I plan to continue defensive action during the last hour of the day if the SPX can not go positive.
I will tweak down domestic consumer exposure with today's trade, again unless the market turns up. After this, I think (subject to change) I may initiate or add more to client's inverse index fund positions.
I executed two sell orders last week, plus the one I have planned for today along with an inverse index trade could reduce equity exposure by about 8% which works out to about 13% of domestic exposure. This is all quickly and easily undone at this point if I turn out to be wrong.
It is worth noting that for the time being my thought about a rally continuing for a while appears to be wrong. My prediction takes a back seat to what I perceive as a message from the market.
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3 comments:
I think it is a good time to get defensive with large cap stocks trading at or near 52 week lows. Names like WMT, KO, BUD, MMM.....you also get a decent dividend and international exposure. I think all the hand wringing regarding WMT is off base. I actually think they will do better if the economy worsens. I normally don't invest in large caps, but this is where the value seems to be.
FWIW - Mojena Market Timing said that a S&P drop to around 1170 could trigger a sell signal on their model.
Roger....please list symbols for inverse funds. Who are the major players? Are there any ETF's?
Thanx.
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