The Split ….More Details…with 1:21 update…confirmed…with followup
We have to say that that quick update this morning was prefaced on the gold breakout which we saw triggered.Â Now everyone is explaining that the breakout was a safe haven play, and that is no doubt true.Â On a relative short-term positioning basis however, Â gold and stocks are cheap, bonds are expensive.Â Initially, gold, being the hair trigger market, moved first.Â At some point it will start being bought for other value reasons, and stocks and commodities will follow, that will put pressure on bonds.Â There is a sequence to all this and all one knows at this point is that gold was first.
11:23 AM CDT
1:21 PM CDT Update
Early technical indications are that the the stock market down move which started on Sunday night has been completed.Â We will need a 2:00 PM reading to confirm.
2:00 PM CDT confirmation
The S&P just confirmed at 1378, 5 points above the early signal.Â This is a level one signal, if you want more comfort, wait for the level two signal.Â We will let you know when that happens.
3:25 PM CDT Wrapup
The market closed on its lows.Â The buy signal that I referenced in the two updates still holds, with a loss.Â This program has an average holding time of 39 trading days.Â I usually do not reference a single program signal, but today a number of emails requested input for initiating new buys and this was the easiest way to do it.Â Sometimes the market gives you a little heat.