Politics and Earnings Season Make for a Fickle Market

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The operative algorithm remains at Value-Bronze-Hybrid-Bull.

The one month up appears to be running into some headwinds.

Yesterday was the first up day in four and as this is being written the Dow is down more that 185 points.

It is always wiser to be nimble and react to changes in the market’s topography than to put yourself on the spot by making a forecast. With that said here’s a guess, the downturn that is starting now may run down to the lows we’ve seen previously this year. From there an upturn starts that will run up to new highs for the year.

There is some historical support for this. After the political party conventions and the candidates for the respective parties are determined there is a broad based atmosphere of hope within the party faithful of both camps that their candidate will win. That psychological lift can fuel an improvement in market sentiment.

We’ll see how it plays out.

Last week’s update for subscribers, if you responded, allowed you to settle happily into your stable value fund. If not, you’re paying the price for not providing 10 minutes a week to focus on your life’s savings. The last few days of negative tilt may shift The System down to Hybrid-Bear by next week. If you’d like to be a subscriber and get your hands on The System that can build long-term wealth in your IRA or 401K, click for a free trial.

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