Buying Opportunity

Today’s market action is a buying opportunity.

Start adding to stocks or SPY from you cash holdings. Do not move all your cash to stocks in one day. Keep on adding 5% of you cash position to stocks every time the market goes down.
The probability of the market going higher in the next few weeks is very good. Investing in the market works in probabilities. There is no sure thing for short to medium term trading.

The market has been going sideways for the last few weeks in a very tight range. It did look extended but with Friday’s (9/9/2016) price action we started to wait for the short term signal to give a buying opportunity (become less extended) before buying. Starting today we believe that opportunity has started.

As we have been saying the price chart of S&P500 index shows the medium and short term signal on the market is a buy but the long term signal on the market is still a sell. This information is displayed on the left side bar under “Market Trend”.