Yellow Flag: Getting Prepared for Rough Trading Ahead!

SYNOPSIS
The major market indexes struggled back a bit from the devastation endured a week earlier. Among changes in the major indexes we follow, one-week changes were minor… either up or down. Both the S&P/TSX Composite Index and the Nasdaq Composite Index have positive trend values, unlike the others.

ProfiTrend Portfolio… Our PTP annualized growth rate is at 19%, the same level as the previous week. That’s low based on historical performance, but still above the comparable stats for the S&P 500 (-9%) and the S&P/TSX Composite Index (+8%).

Seasonality… We repeat the generally negative outlook for equities in August, and include a multi-month seasonal play on gold bullion and gold stocks. Thackray apparently has skipped his monthly videos for August. They normally elaborate on what we’ve extracted from his book.

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Topic of the Week… Yellow Flag: Getting Prepared for Rough Trading Ahead!

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Although media talk of a severe correction has toned down quite a bit last week and into the beginning of this one, we’re seeing evidence that there is not going to be a prompt snap back into rampant bull market trading. Obviously, we hope that we’re wrong. Today’s discussion goes into more detail of the “yellow flag” status of the equities markets and how to cope with what lies ahead.

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