I expected the market to be flat to up this week but it actually declined a modest .5%. I still think we have not seen a bottom yet and we need to have more selling pressure along with some more investor pain. One indicator I’m watching to trigger a buy signal is the VIX. The VIX is an indicator of investor pessimism. The higher it goes the more pessimists the average investors are. Anytime in the past year when the VIX has reached over 30 a big multi week rally has ensued.
It’s a good time to get your shopping list together. My pickS will be 2:1 leveraged ETFs and mutual funds that will soar twice as much as the market when we get a snap back rally.
UYG is the financial index that has been beaten down
QLD is the NASDAQ and technology market
UGPSX is a China fund that has been crushed in this global bear market.
All these will be excellent buys and I expect they will go up at least 25% in the short term once the bottom is in place .
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