market update 6.26.11

The model is still signaling that there are no trades at the moment. That means the market will probably trade sideways until a trade appears. If you followed our advice you would be sitting with cash at the moment. The question is when to use that cash.

Once a trade appears we will write about where to put that money.

Also, take with precaution. Our model suggests that 2011 will be similar to 2004. In 2004 the S/P 500 market fell over 7%. At that point it was a low and the market traded sideways from August to the end of October. If 2011 is going to remain like 2004, the S/P 500 has bottomed. However, the market will then trade sideways until the end of September. If one wants to it may be prudent to use some of that cash little by little. If the market falls more buy more. We are not predicting any hard fall from here on. Any fall in the US market will still be in the 1200 range.

However, the most important signal is where to put the money based on the model results. There is no trade of yet.