Back Below The Domestic Trend Line

The domestic Trend Tracking Index (TTI) has been holding up better than the major indexes over the past few days, but Wednesday we headed again slightly below the long-term trend line.

As of yesterday, the TTI had dropped -0.16% below the line, but I will wait a few more trading days for further downside confirmation before issuing a domestic Sell signal. The culprits for this downward action were the financials along with evidence that ever rising oil prices are disrupting the economy.

Be that as it may, being stuck in the neutral zone requires us to wait until a price breakout to either side occurs before we can take further action. Many sectors and country funds have been zigzagging, which means many trends have come to an end or at least volatility has increased to such a point that staying away from these arenas appears to be the soundest course of action, at least for the time being.

My hedge against our long mutual fund positions is working well as the gains on one side more than offset the losses on the other.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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