Retracement Continues

Current position for Active portion of portfolio: SELL – S.T.A.Y. Plus™

Retracement Continues, Still in Long-Term Downtrend

Last week the market was up again, breaking it's streak of lower lows and higher highs, however, it still has not recouped the single-week loss from 3 weeks ago (see large red candle stick- 3rd in from the right), nor has it reached the 50-61.8% Fibonacci retracement from the February 2nd high (see last week's post, right below this one).

What does this mean?
It means that the market is still in a long-term downtrend and we will remain invested inverse to the market until it proves otherwise. Even though the last two weeks have had slight up-ticks, we are not chasing short term trends, we are using a long-term trend following strategy that requires discipline and patience. If / when the market demonstrates that it's shifting to a long-term up-trend, we will shift our portfolios accordingly. Until then, we will remain positioned to make money in a down-trending market. At this point in time we believe that this prolonged down-trending market has not reached it's bottom and it is entirely possible that in the coming weeks we may see some acceleration to the downside. Only time will tell. 

​Weekly Chart of the Standard & Poors 500 Index (S&P 500 AKA "The Market")

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