| The market for February:
There are conflicting forces driving the
market for February. On the positive side we have the T-Index at a high
positive number reflecting that the economy as measured by the
relationship between long term and short term interest rates is in good
standing. The market generally goes higher under these conditions.
On the negative side we have longer term stock price and interest rate
forces that are holding the market back. These forces are transitory and
will soon pass allowing the market to go higher. During February and into
March they represent a problem for the market. This is a good time
to stay in the money market or go day by day.
How to trade these signals:
1. Using the overview in conjunction with the above market comments can
help you decide the most likely course of the market over the coming
month. Using February for example, the overall trend is shown
as down until the 25th of the month, although you could use an inverse
index fund like the Rydex Tempest or Venture it is best to take a longer
term position when both the T-Index and longer term market forces are in
agreement. Sometimes they hold a direction for a long period of time
and sometime they are less stable. A look at the following month
would provide you with additional helpful information available to
subscribers.
2. Using the Two-day forecast to trade on a daily basis enables
you to take positions in index and other funds prior to the close of the
market. After the close you can check the two day signal against our
Daily signal, and if you are more cautious you can exit the market at the
morning fix if they are in disagreement.
You must
remember there is always risk of loss when investing. Past
performance is not a sure indicator of future performance and
hypothetical performance even less so.
It's not the strongest of the species that
survive; nor the most
intelligent, but the one most responsive to change.
---Charles Darwin
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