The S&P-500 has now climbed back to equal the highs of December and November of 2018. Quite a bounce after a 20% free-fall. There is still a ways to go to reach the all-time highs from last August, but the mathematics of our methodology are close to declaring a new uptrend for this asset class.
Today, Friday, 3/23/2019, stocks have been pulling back, perhaps because US housing purchases were much much weaker than expected. However, they could just be taking a rest after this strong bounce-back rally since Christmas. As the volatility in stocks has decreased, we’ve been gradually adding to our stock positions and reducing cash. If the upward trend materializes, we’ll add more stocks.
Gold continues its bumpy climb. After reaching about $1,350 / oz. the sellers came out and knocked it down to about $1,285. Today, though gold is hanging around $1,308, so the intermediate trend is still positive. When gold volatility spiked on the pullback, we reduced our position in gold accordingly.
There has not been much change in our allocations in spite of all the wild news, so I have not been writing as many blogs for the last few weeks. I expect the excitement to pick up over the next month or so.
Have a great weekend.