Stock Market Checkup

Looking at the long term chart below, it seems pretty obvious that the bull market has quite a way to go before we get a sell signal. And by that I mean possibly one or two more YEARS. The RSI is just breaking above 70 (not crossing below), the MACD looks nowhere near ready to cross over to a sell signal, and the STOchastics have not yet dipped below 80. Every indicator reads LONG right now. With this in mind, looking at the shorter term charts, which are VERY OVERBOUGHT, we are long overdue for a SIGNIFICANT CORRECTION. What will be the catalyst? Your guess is as good as mine.

 

Global Dominators Literally Rule

I am always looking for SIMPLE world class long term rate of return, dividends, diversification, safe, ‘no-brainer’ investment. In my mind, the “Diamonds” ETF (Symbol: DIA) epitomizes all of the above. It’s comprised of the Dow Jones 30 Industrial Average Stocks, period. What better investment could there be than a basket of 30 of the biggest, baddest, global dominating multinational corporations in the world? Who’s going to better be able to withstand anything and everything that the world can throw at it? Who’s going to better capitalize on bear markets by gobbling up small and medium sized companies? Who’s got the politicians in their pockets and the people on their payrolls? The easiest and safest way to ‘get into’ the stock market when it is so ‘high’ is to simply divide your total investment by twelve and then invest 1/12 into DIA every month for one year. If there is a downturn, you’ll buy some on the cheap, and if there isn’t you’ll be happy not to have allowed your pessimism leave your investing on hold. Note: Whatever cash you must spend within three years should NOT be in a long term asset like stocks.

Other worthy ETFs include SPY and VT. Do your homework. My fave is DIA.

Happy New Year!

Sell In May And Go Away?

Based on this monthly chart, if history does indeed repeat itself, the market should crash after one more rally above the blue line. Sell in May and go away – FOR A YEAR?