Neutral Positions

For the short to intermdiate term (60 to 250 days) investor,  neutral positions would now seem to be appropriate.  The market blowoff yesterday sets up a big headwind and the computer sell signals are now starting to click off on commodities and stocks.  The moves since September 1, 2010 have been based on a singular factor which sparked enormous speculative interest.

Computer trend signals work best in strong trending periods like the last 120 days.  Generally strong trending periods are followed by consolidation periods where the computer signals tend to flop around for an extended period. 

If you are a Macro investor as I am, the 850 area of the S&P 500 index still looms as the target.