FREDAlert!
Volume 8, Issue 1
January 7, 2016
We discussed that our plan has been for the market to be down for the first week of January and it looks like this will be the case. Accordingly, rather than wait for a breakout above 211 to put all of the cash raised on the last decline to work, we would do this now (we will use the closing price on SPY today).
Several folks have called me regarding whether they have been 1/3rd cash or 2/3rd cash, due to some conflicting guidance we have given – but that is now moot as we will add all cash at this time, with a target of 210 – 211 on SPY, or reevaluate at the end of January to raise or not to raise cash.
If aggressive, look at stocks in Industrials that are highly rated by your firm, and I would tend to avoid last year’s leaders. Add some small cap. Stock names would be TTC, HCSG, and ASGN.
Aggressive ETF traders can add SPHB, and PRFZ. Use limit orders only unless heading hard down into the close. IWC is an interesting speculation.
We have been expecting down into Friday and tomorrow could be down as well, but we are seeing some signs of panic that cannot be ignored if you are an aggressive player. If we do not turn up/broaden out over the next week it is likely we have started a bear market and will have more on that should this occur.