Yesterday’s fairly calm day in the market pushed our domestic Trend Tracking Index (TTI) through the upper range of the neutral zone (+1.50%) to a level of +1.73% above its long-term trend line.
As I mentioned in last Thursday’s post, I like to see that level supported for a few trading days to be sure that there is enough follow through buying to support this current trend. If this comes to pass, I will announce a new Buy signal on this blog the day it occurs. I will then ease into the domestic markets with about 1/3 of portfolio value, not all at once, but over a week or so. My no load fund/ETF selections will be based on those showing the strongest upward momentum numbers.
The international Trend Tracking Index (TTI) has improved but still remains -3.01% below its own long-term trend line in bear market territory.
As I am posting this on Tuesday morning, the markets are down sharply and, barring any sudden recovery, we may end up again back in the neutral zone below the +1.50% level. This potential buy may or may not materialize. I will keep you posted.