The S&P 500 long term "Sentiment" signal has confirmed and is signaling a "buy period" (see
Investment Strategy page). I will continue to buy on days when the market has dropped. However, I will not just wait for days when the market has dropped below the expected low range. I intend to rebalance my portfolio to be more heavily weighted in equities between now and the time that long term "Sentiment Chart" signal has crossed zero or until there is formation of the "Super Signal" (whichever comes first). I believe it will take approximately 10 to 12 weeks for the long term "Sentiment Signal" to cross zero based on the current trend. The expected trading range for the S&P 500 this week is 1,226 to 1,329 (or +/- 4.02%).
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| 01/06/2012 S&P 500 Sentiment Chart (click on chart to enlarge) |
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| 01/06/2012 S&P 500 Super Signal Chart (click on chart to enlarge)
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| 01/06/2012 S&P 500 Weekly Range Chart (click on chart to enlarge)
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