Markets across the world tumbled last week on concerns of a slowing economy here and abroad in China. Although this is what most talking heads keep saying on TV, IMHO is not the reason. Rather, the trigger was pulled a couple weeks back when the BOJ raised interest rates for the first time in a decade. This ended the carry trade that most hedge funds have been taking. Borrowing cheap money and investing it abroad.
So are we out of the woods yet? I don't think so and to tell you the truth I'm expecting another big sell off before the market stabilizes. Either way, my opinion will not effect my trading decisions. The system is currently in sell mode but is getting close to giving us a buy signal, if that signal materializes I will take it. Last week our aggressive portfolio was up close to 10%. You can view performance of both portfolios by clicking on the links on the right side of this page titled 'Track the system performance'.
The system remains in sell mode.
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