By S. Reity ....

[H. LEIN]

New Math for Stock Market Downside
When the market was rallying early in the session on Monday I sold the 3 riskiest stocks in the Reitmeister Trading Alert and now have nearly 40% of my money in cash. The math equation below should explain to you my newfound caution:

Weaker economic reports + More aggressive Fed + Presidential dead heat = Greater uncertainty = More downside risk in the near term.

This equation does not change the long term bullish bias. But it does say why stocks could go lower in the near term. Likely a test of 2100 is on the way or even all the way down to the 200 day moving average at 2059. That would be a ripe spot to put some of that cash back to work.

Long term investors can just stay the course. However, more aggressive short term trades should consider joining me in this market timing move.

Best,

[chaval]

Viene a decir que aprovechar la volatilidad en la que estamos, para sacar alguna ganancia con riesgo.

Hay muchas probabilidades bajistas a corto plazo por las incertidumbres existentes, pero de fondo predominara la tendencia alcista.

El que quiera entender, que entienda.