2016年2月9日 星期二

The Dow – Down & Dirty?

www.armstrongeconomics.com

The Dow is playing catch-up to the S&P500 which broke last year’s low. The lagging Dow still reflects the differential between big international money and domestic. Nonetheless, our opening pivot number for this week was 16153.

Opening beneath that number warns we may yet close lower for this week moving into next week where we may see a low form. A daily closing below 15877 will warn that the Dow can yet make lower lows.

www.armstrongeconomics.com

The two main areas to avoid are (1) ANY investment in government bonds (federal, state, local), and (2) bank stocks. These will be the two areas of major concern as we move forward in time. You can keep cash in U.S. TBills for right now, but as we move into 2017 you are better off with AA corporate paper.

These two sectors will become contagions. European banks are in the lead for a collapse. The U.S. banks are still OK for now, but caution in advisable.

沒有留言:

張貼留言