is when you are in cash.
I’m betting that the market is going to correct starting later today or next week and I can be totally wrong. And to stand by my bet, I’ve raised my cash level to 67% as of now.
Why am I making such a bet?
Take a look at the daily $SPY chart below:
I asked myself what is $SPY “not” doing?
It is not taking off in a big way to follow up with yesterday momentum. Regarding yesterday momentum up day, did you notice that the volume was less than the volume of the previous down day?
It is very possible that we are looking at a dead cat bounce and again, it is possible I’m very wrong. Some will say we are bouncing right off the 79 sma line. That is very true too. As much as I can see the bounce, the underlying lower volume behind the bounce bothers me.
So, what’s wrong with my being wrong?
I’ll just have to start nibble back in next week if the market continues to head skyward.
On the other hand, I could be looking for bargain hunting.
Either way, I’m feeling quite peaceful with a high level of cash as of now.
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