We have to abide by the rules of the great and mighty HFT programmer hipsters and their love for all things technical analysis (and shunning of any mention of things luike PE ratios or price to book values!!!)…
The RSI on the S&P is around 65, the slow stochastic has moved into extreme overbought territory and stocks in general look to be at the top of the trading range. Our technically oriented market model is now in a short position here… Keep in mind any shorts should be hedged against dollar devaluation (gold, silver, commods, real estate, etc… are all OK hedges for dollar risk)…
Till next time, we would batten down YE Old hatches and prepare for stormier seas ahead, though we hope we are wrong and that the market goes higher forever (or at least 66% of the time like it says in the CFA level one manual…)
