Hope and optimism that the economy may have bottomed were pushed to the front burner again, and all major indexes gained solidly to start the week out on a positive note.
Lowe’s better than expected first quarter results provided the fuel for the rally, which was followed by improved homebuilder confidence as well as an upgrade of the financial sector.
Our Trend Tracking Indexes (TTIs) moved higher as well and, as of yesterday, the domestic TTI has moved again within striking distance of a Buy signal:
Domestic TTI: -0.26%
International TTI: +4.20%
Hedge TTI: +1.97%
To avoid any potential whip-saw signal, I want to see a clear break above the trend line as far as the domestic TTI is concerned, just as I did with the international TTI a week ago.
I will keep you informed via future posts as to effective date of any buy signal that might materialize this week.