Purely based on price, it appears as if market has resumed the BULL trend, however other indicators suggest otherwise. This leaves us with two options:
- When in doubt DO NOTHING, stay put and wait for confirmation
- Invest 25% and on confirmation invest rest. This does mean that we miss initial rally but in case if things don't work then we won't take a BIG hit
What does it mean for our Investments?
- 401K/IRA - Based on your situation and risk appetite, one shall make a wise decision as explained above. Remember, our goal should always be capital preservation and low risk entry.
- Stocks/ETFs - Only invest in very convincing patterns and DO NOT forget to have STOP LIMIT in place. As earnings season continues, make sure to know important dates for open positions.
Market appears to be resuming BULL trend but needs more confirmation...