No positive news anywhere with weakening consumer confidence and more housing weakness leading the charge for the bears. This might not have been too bad of a punch but lack of commitment from the Fed in regards to an interest rate cut sent the market south with the Dow losing 280 points.
Our Trend Tracking Indexes (TTIs) followed suit and are hugging their long term trend lines as follows:
Domestic TTI: +1.23%
International TTI: -0.90%
What a difference a week makes. After last week’s rally, the markets seemed to have calmed down but now we’re right back in the volatility game. As I mentioned in previous posts, I’ve been holding off re-investing in the international arena, despite the international TTI having moved above its trend line.
As this market action proved, we are still in shakeout mode and may be dancing around the trend line for a while. This is why I want to see a clear break to the upside before making any commitments.
This downside move has brought a potential domestic Sell back into the equation. I will liquidate my remaining domestic holdings if either their 7% sell stops get triggered or the domestic TTI crosses its trend line to the downside; whichever occurs first.