S.T.A.Y.™ current position for Active portion of portfolio: CASH – S.T.A.Y. Plus™
Review of the past and adjustments for the future.
Some significant changes were made during the last two years due to a drastic change in how bonds performed in relationship to stocks.
(Bear Market of 2022 S&P500 -24% vs Long Term Bonds -32%)
We have been long the market since the “line in the sand” level of 4607 previous high of 7/27 was penetrated.
Since then, the market has risen about 2 ½%. Therefore, we are currently in line with how the market has been moving in recent weeks. Keep in mind another “line in the sand”, which would be the previous all-market high of 4818 made on January 4, 2022. This is the “line in the sand” that the market must penetrate to leave the bear market in the rear-view mirror. Although we are not out of the woods yet, we will keep you posted.
This new long position (terminology for going with the upward trajectory of the market) may be for a few days or a few weeks as we will be operating off of our shorter-term indicators to make changes as needed in a more timely fashion. We will keep you posted. If this more sensitive signal continues to indicate a breakout, this will change the longer-term signal from CASH to a BUY.
Weekly S&P 500 Chart with Fibonacci Retracement Percentages (from the all-time high)
Monthly S&P 500 Chart with Fibonacci Retracement Percentages (from the all-time high