The equity market would have been in much better shape had it corrected a while back, but it has over-extended itself and brought in a bunch of intermediate term complacency.
We will have to see how it plays out, but I really am starting to lean into the camp of the March low having the potential to be violated upon the decline. It is for this reason that I am going to initiate a hedge in the equity portfolio.
Call me Short Term/Intermediate Term Bearish here. I do remain Bullish long term.
This is a chart of the Sentiment of the equity markets. Not only are we near the area that declines usually begin, but there is a relationship with the 39 day moving average. Take a look at the chart.
No comments:
Post a Comment