The Round Rock Wealthbuilder's Meetup Message Board › Is it time to go into cash in 401K?

Is it time to go into cash in 401K?

wayne l.
user 12981132
Leander, TX
Post #: 1
Hi all, especially Vince,
Is the bullish percentage indicator telling us to get out of the market and go into cash yet?
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 258
See my market sentiment charts here:

http://stockcharts.co...­

Most of the charts are losing momentum, including the BP's, halfway down the page. Q1 is almost over, and this includes recent hedge and mutual fund "window dressing" purchases. April 1st the Volcker rules go into effect, limiting TBF banks from trading for their own accounts, so there's a real market risk of less cash chasing stocks. And if initial Q1 earnings releases don't match forecasts . . .

(I've been raising cash)
Kumar
user 3842200
Austin, TX
Post #: 13
Hi all, especially Vince,
Is the bullish percentage indicator telling us to get out of the market and go into cash yet?
The exit signal came Monday on March 17.
Update of QQQ timing study (Not an Advice)

"The Slow Stochastic fell below 80 (at 77) and onfirmed the Down Cross of 10MA at Monday’s Close"

wayne l.
user 12981132
Leander, TX
Post #: 2
Thanks Dan and Vince for your replies.

Looking forward to discuss what happened today in the market and what might happen in the days to come.
wayne l.
user 12981132
Leander, TX
Post #: 3
Today looks like a head and shoulder formation and if we close below 1600 means that next support is 1550. What do y'all think?
Dan Caldwell - Wea...
user 3188546
Round Rock, TX
Post #: 262
I pulled back in March, raising cash, but this is looking more and more like a short term correction. My observations:
• The NASDAQ, as if on cue, bounced off 200 dma support
• TWM (3x Russell 2000 Bear ETF) is losing momentum
• 10 yr. Treasuries, on which mortgages are priced, are stuck in a narrow range. If money was moving out stocks it would normally rotate to bonds and I'm not seeing bond prices going higher.
• WSJ yesterday banks are loosening up and lending more to medium and small businesses. The banks are also loosening credit restrictions to homebuyers. IF the six trillion piled up in bank reserves begins to move, the velocity of money starts rising, and the entire economy picks up steam. (This would be inflationary, but we do need money to circulate and right now it's stagnating.
• And rising gasoline prices are an early indicator of pending inflation
• As a contrarian investor, there's too much cash sitting on the sidelines, with too many people expecting a major correction. The market never does what everyone expects.
• Mid-term election campaigns are starting to gather momentum. IMO the current administration needs to "juice" the jobs situation so that people feel good about the economy when going to the polls. They do that by loosening up the money piled up on the sidelines by loosening credit restrictions.

Logically it makes sense - we'll see.
Powered by mvnForum

People in this
Meetup are also in:

Sign up

Meetup members, Log in

By clicking "Sign up" or "Sign up using Facebook", you confirm that you accept our Terms of Service & Privacy Policy