Slipping And Sliding



The markets could not find any footing yesterday and south we went. Oil prices slipped due to the fact that the much touted recovery may not arrive as expected, which would reduce demand.

As is usually the case with sharp market rebounds, the magnitude of this one overshot to the upside and was way overdue for a correction. With talk emerging, that another stimulus package is needed by the end of the year, it simply confirms that all is not well.

If another package is enacted, it will have just about the same effect as the current one, which was zero. It does nothing but elevate hope that a recovery is near, which helps the markets rally, and then we’re back to square one except more debt has been created. It’s a vicious cycle indeed.

This drop affected our Trend Tracking Indexes (TTIs), which now are positioned as follows:

Domestic TTI: +1.28%
International TTI: +6.82%
Hedge TTI: -0.59%

We will hold all positions subject to our trailing sell stop points.

About Ulli Niemann

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