S&P On Buy Signal As Oil Sell Signal Flashes
Jack Chan | Nov 04, 2019 06:23AM ET
Our equity/bond model - This long term reliable investing model provides investors with simple decision making in the markets:
Our benchmark S&P 500 is on a buy signal.
Oil sector is on a major sell signal.
VIX – volatility index
VIX is down and markets are up.
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An update on the Dow theory:
Our benchmark $SPX continues to make new highs in 2019, while the transportation index continues to make lower highs, thus resulting in a “non-confirmation” and a Dow theory sell signal remains in force.
This is an observation and not a prediction, as market dynamics are constantly changing. But such a divergence in itself is worth monitoring.
Summary
The long term signal on the broad market is up.
However, the current investing model favors bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety overgrowth.
The best opportunities are in the energy and gold sector.
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