Market Update 8.14.11

Last week we suggested the market would flat to slightly positive based on some of our indicators. A pretty bold move given the great uncertainty. The market was slightly down. We believe the US market is near a bottom and it will recover until the middle of September. By then it will fall late September and early October and increase until the rest of the year. At that point we will have to evaluate. However, the outlook is not great.

Even so our indicators do like the Asian tigers such as Indonesia and Thailand.

The model likes gold as well. However, we sold because of the large run up. We will look to buy later on. In addition, commodity markets are becoming slightly more bullish such as Brazil and South Africa. With the Fed keeping interest rates low this could mean more gains for commodities. We are waiting to receive a confirmation of this trade before acting on it.

Model Update 8.6.11

Model signals to stay in Asian markets. Confirmation of an Asian tiger trade, indonesia, malaysia, and thailand. Also Japan, India, and China. Gold continues to be bullish.

US is now at the bottom of the list of the rankings. However, the US indicator is still below crisis levels.

Analysis suggests that this next week won't be as bad as last week comparing to other periods. There could be a possible rebound or flat week.