As the Trend Tracking Indexes (TTIs) are hovering tightly above or below their long-term trend lines, I tend to spend a little bit more time updating the important numbers you need to know on a day-to-day basis.
These are critical times in terms of making decisions and, once a clear trend (either up or down) has been established again, I will focus again on other issues.
Yesterday, the markets retreated first and then traded the day in a sideways pattern, essentially closing unchanged. What that tells me is that there is great uncertainty, and we could very well be at a major inflection point. That simple means that right now upward and downward momentum are fairly balanced, which is why we haven’t seen any clarity in direction.
While this pattern may continue for a while, sooner or later a break out will occur. That could be either in form of a renewed downward slide back into bear market territory or as a breakout, which could carry the major indexes to higher levels.
I have no clue which way it will play out but, as I have repeatedly said, I prefer to err on the side of caution. To me, that means enforcing my sell stops even if I have to hunter later on for a new entry point should the markets head back north.
The old saying that “I’d rather live with lost opportunity than with lost money” is something that many investors should take to heart in these uncertain economic times.