7-8-10 Market Indicator 2, Indicator 4 Changes

Market Timing Indicator Change

The Major Market Timing Indicator #2 AND REIT Index Timing Indicator #4 changed to UP on Thursday 7/8/10 – the conditions for triggering the change to UP for both Indicators occurred on Thursday.

The publisher is moving about half of his holdings from cash to aggressive funds, and will wait to see how the market acts over a few days before investing further.  

Why am I not moving ALL of my holdings to aggressive funds as I have with recent “UP” trend changes in Indicator #2?  Two reasons:

  1. I am more cautious with Indicator #2 “UP” positions when Indicator #1 is “DOWN”.
  2. The market rose a large amount over the 4 days immediately before Indicator #2 moved to “UP” – a small pull back is more likely now.  I will use that pull back to invest more, or stay out if the S&P 500 falls too far.