Yesterday’s market bounce, although on low volume, was a step in the right direction. It’s too early to tell if this is the beginning of another uptrend or just a head fake. Many traders are still on vacation and will not be back to their desks pushing buy and sell buttons till after Labor Day. Until then, any moves to the upside or downside may not have much meaning.
The Trend Tracking Indexes (TTIs) are now situated relative to their long term trend lines as follows:
Domestic TTI: +2.30%
International TTI: +0.46%
As you can see, the International TTI recovered and barely broke back above its long term trend line. To avoid a whipsaw, I will hold off making any commitments in that arena until I can better determine if this is a sustainable trend or simply sideways action.
I am looking at some sector opportunities and may make some investments in those areas that have best withstood the recent sell off.