Wednesday, January 28, 2009

Good News...And Bad News

Good news: The Value Line Composite Index closed above its 75 day moving average, pushing my timing model from -4.5 to -2.5.

Bad news: 2.5 still equates to a 0% long, 100% cash allocation. Also, short term sentiment is very overbought as of the close today. If the VLE 5 day moving average crosses above its 75 day moving average, it will push my model to -.5, or 40% long.

Expect whipsaws, but the recognize that the trend is your friend. If we continue higher I'll be putting chips on the table.

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