Chart courtesy of StockCharts, StockCharts.com
Current Signal: CASH
Analysis: This week a new CASH signal was issued. The latest move from the August 2009 BUY signal to this week produced a safe 6% profit.
This week volatility rose and we can now expect a consolidation phase with at least a mild correction. Currently I don't see a market crash, though this could happen a bit later. The rise in stocks and also the end of the recession (the economy grew by 3.5% in Q3) have been caused by government stimulus and very low interest rates increasing liquidity in the financial system.
For a sustainable recovery there will have to be investment and employment. I expect this to happen in the green energy/technology sector, but for now it is better to be on the sidelines with stocks.
If you want to learn more about green energy/technology issues, Wikipedia has a good overview of smart grids. Smart grids are the technology platform where development will take place. New services are also explained on the wikipedia site.
Have a great weekend,
Tom
Current Signal: CASH
Analysis: This week a new CASH signal was issued. The latest move from the August 2009 BUY signal to this week produced a safe 6% profit.
This week volatility rose and we can now expect a consolidation phase with at least a mild correction. Currently I don't see a market crash, though this could happen a bit later. The rise in stocks and also the end of the recession (the economy grew by 3.5% in Q3) have been caused by government stimulus and very low interest rates increasing liquidity in the financial system.
For a sustainable recovery there will have to be investment and employment. I expect this to happen in the green energy/technology sector, but for now it is better to be on the sidelines with stocks.
If you want to learn more about green energy/technology issues, Wikipedia has a good overview of smart grids. Smart grids are the technology platform where development will take place. New services are also explained on the wikipedia site.
Have a great weekend,
Tom
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