From the desk of Vance Howard:
After what was a strong run-up, the HCM-BuyLine® has turned back to negative, and we have been reducing exposure to equites into any rally we have had. We are approximately at maximum cash, which is a very solid 40% or maybe a bit more. Remember, the HCM-BuyLine® has 73/27% average of being right or wrong. The market is deeply oversold, but any rally should be held suspect and patience should be adhered to. The market will bottom but only time will tell when it does. With the massive cash build-up we have, the turn of the market could be very rewarding. If we break the February 22 low the market will probably sell off to the 3980 level on the S&P 500, which would be the next level of support.
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