The prospect of inflation, along with the destruction of the dollar, seems to be on many readers’ minds. Frank’s question is very typical: I have been reading your newsletter for over 2 years, and I enjoy your comments. I have one question and it is a big one do you think we are really heading into deflation or will inflation …
More Trend Line Talk
In “Reader Question: More On Sell Stops,” reader Jon responded by saying the following: If you buy only when the index cuts above the trend line and sell when it cuts below it you will, by definition, realize profits equal to the increase in the trend line between these two moments in time!While that is correct if in fact the …
No Load Fund/ETF Tracker updated through 12/16/2010
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpNot much volatility, but the S&P; 500 managed to eke out a small gain. Our Trend Tracking Index (TTI) for domestic funds/ETFs has moved above its trend line (red) by +5.26% (last week +5.12%) and remains in bullish mode. The international index has broken above its long-term trend line by +6.46% …
Nothing But Red
Yesterday, the markets did a repeat of the last few days in that an early rally ran into resistance causing the trend to reverse, and we ended up with slight losses. Interestingly, there was no place to hide and red numbers dominated the computer screens. Stocks were down along with bonds, gold, oil and most country funds while the dollar …
Repeating The Fade
If you look at yesterday’s chart, and compare it to the one shown above, you will see a virtual mirror image of market activity, reflecting almost the same highs and lows in the S&P; 500. The markets crept higher in the early going, supported by better than expected November retail sales, but sold off after the Fed announcement. There were …
Emerging Market Trends
While no trend will last forever, emerging markets have been on a tear for most of this year as the 1-year chart above shows. There was a brief interruption in upward momentum when the S&P; 500 dropped over 13% during the May/June period. More recently, since the Fed announced its Quantitative Easing (QE-2) program in early November, emerging market ETFs …