With the S&P 500 losing another -1.70% since the last ETF Master Cutline Report, it’s no surprise to see the number of ETFs above the line reduced further. Currently, there are 34 ETFs positioned in bull market territory and 362 below the line and in bear market territory.
In a repeat from the prior week, precious metals occupy the top positions, despite gold having participated in its own roller coaster ride. However, the major trend remains to the upside as the precious metal is not only firmly entrenched above its long-term trend line by +22.47%, but has only come off its high by -2.11%.
This is followed by various government bond funds, which continue their moves to higher ground as lower interest rates support upward momentum.
Take a look the latest report:
[If you are not familiar with some of the terminology used, please see the Glossary of Terms.]
As I have said repeatedly, this is not the time to be a hero and engage in equity bottom fishing below the cutline, as the trends clearly point down. Right now, you need to step back and let this situation play out until better opportunities present themselves. Remember these timeless words of wisdom: “Cash is a position too.”
Disclosure: Holdings in GLD