A Crucial Day…

Yesterdays late capitulation action which continued overnight has taken the S&P Index down close to that important 1172 price level.    In our opinion it would help a lot if we got a second dose of tough love today, no FED interest rate cut.  That would let the market tell the story, is it really in big trouble or has the market adjusted to the current news and is this a significant bounce bottom for now.  We have been clear that we think the market is going significantly lower before it reaches a bear market bottom, probably a couple of years from now, at the moment however, we are primarily focused  with this mini-bottom and what we have have termed an anticipated election rally.    

Most of the time portfolios using aggressive decision parameters out-perform conservative portfolios and that is the case for us now.  As of the moment with the S&P Futures at 1180 this morning our aggressive decision Portfolio, which we show in our Portfolio Results area, is up 18.0 percent for the year to date while the Conservative Portfolio is up 13.8 percent and has been in cash since our sell recommendation when the S&P traded at 1440 on May 19th.  We will take our aggressive Portfolio to all cash also if its performance drops to the Conservative Portfolio level and possibly go short if it seems appropriate at that time.  So for the moment we are sticking with our positions and will be watching the market and the FED.

7:06 AM CDT