by Monty Pelerin
Monty Pelerin’s World
Caution, perhaps extreme caution, is in order regarding the stock market. This caution continues to be reflected in the Dynamic Momentum System which ranks ETFs. The top-ranked ETFs continue to be safety-oriented. BIL, a cash equivalent, ranks highest.
This note shall be short. I have been traveling and had my laptop pass away. The DMS system(s) continue to rank BIL (cash) as the highest ranked position. UNG (natural gas ranks second). The SSS switch continues to recommend cash. That recommendation has not changed in about 7 or 8 weeks. In retrospect, it has been correct.
All of the trading systems signal caution. If you have been following these momentum rankings, you are already out of the market (at least for whatever portion devoted to DMS — SSS trading).
From a fundamental standpoint, there has been little reason to participate in equity markets for the last year or more.