*** PREDICTION for the Next Trading Day:
For Wednesday we say: "We expect a continuation of the 2-day market rise, although our Market Timing Indicator (MTI) has weakened so that it is now just barely above the 1.0 neutral value (the MTI is at 1.0095). Our Market Assessment (BNB Indicator) has improved to 'slightly Bullish', and we continue with our BLUE ('relatively' safe) Market Color Code. Our long-term (mutual fund) signals, of course, remain in the BUY state."
*** Scoring of Previous PREDICTION:
For Tuesday we had said: "Tuesday should be a good day for the market, and the market should close nicely higher. Our Market Timing Indicator (MTI) has once more surged to a moderately strong value (1.3879), and is thus now above the 1.0 'neutral' value. The Market Color Code has gone to BLUE ('relatively Safe'), and our long-term (mutual fund) indicators remain in the BUY state. Our market assessment indicator (BNB) is now back at Neutral, but there is a distinct upward bias now in the works".
How did we do? The Forecast for Tuesday was perfect!
*** Note 1: The MTI can range from about -2.5 to +2.5, with a 'neutral' value of 1.0. A value of 1.0 will generally be associated with a market that is either stable (holding its valuations) or rising slowly and erratically. Values greater than 1.0 signify a 'long' market, while values substantially below 1.0 (and especially zero or negative) signify shorting situations. Although the MTI is extremely useful (especially in the construction of equity-specific models), bear in mind that it has a reaction time of several days. It is thus not sufficient to use this indicator alone for trading specific equities on a day-by-day basis.
Schulenberg 2X-Hedged IWM (^IWM2)