Investors Weekly Update

November 2, 2019

Our equity/bond model - This long term reliable investing model provides investors with simple decision making in the markets:

  • When the model favors stocks, investors should overweigh in equities for maximum growth.
  • When the model favors bonds, investors should overweigh in bonds for safety.

Our benchmark S&P500 is on a buy signal.

Oil sector is on a major sell signal.

VIX – volatility index

VIX is down and markets are up.

An update on the Dow theory:

Our benchmark $SPX continues to make new highs in 2019, while the transportation index continues to make lower highs, thus resulting in a “non-confirmation” and a Dow theory sell signal remains in force.

This is an observation and not a prediction, as market dynamics are constantly changing. But such a divergence in itself is worth monitoring.

Summary

The long-term signal on the broad market is up.

However, the current investing model favors bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety over growth.

The best opportunities are in the energy and gold sector.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple investing model which provides us with simple investing decision making. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets.  www.simplyprofits.org

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Jack Chan

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

Domestic gold prices tumble on reduced demand