From the desk of Vance Howard:
The HCM-BuyLine® went negative last week for the first time since mid-February 2020, during the beginning of the pandemic. We are about 30-50% in cash and very short-term bonds. We were scaling out last week trying to take advantage of any rally the market would give us, of which there were not too many. The bears currently have control of the market and preservation of capital is the name of the game.
The NASDAQ is trading below its 200-day moving average, but the S&P 500 is just above the 200 DMA. Not pretty chart patterns. We do expect a rally for a few days, but then we expect the sellers to show back up.
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