Look for a Slow Upward Course…………Dollar Comment
While Geithner’s public style does not inspire a lot of confidence, supposedly he is smart and doing the right things behind closed doors. Maybe that is the right thing for the moment, less hype and more thinking. It all works towards a slow steady upward tilt to the economy and the markets.
At the moment. technically a weeks trading on the S&P 500 above 729 will confirm a bottom from a long-term standpoint. The 50 day moving average at around 812 is beckoning the market for a test and that is where we are headed at the moment. If the market can close above the 50 day moving average it will be on track to work within the long-term slow sloping trend-line off the November 21 low, a pattern not dissimilar to the 1987 pattern.
The EMA ETF Fund NAV was 889 on Fridays close.
8:22 AM CDT
Dollar Comment at 12:25 AM CDT
The dollar backed off to a point where it makes sense to start building a position again if you trade it. Our current short gold position fits this overall strategy . With our EMA ETF Fund at a full position, 1.6 Leverage, we would have to sell something to move into the dollar position so we will not add anything to it at the moment. Our Aggressive Marketocracy Portfolio, however, will be adding some dollar positions here.