The Founders Group just took a 25% position in the S&P 500 Index at 3850, just above the Weekly Expect Move Low, which the market tagged near its low point this morning. This also put our buy back into the the vicinity of the 50-day moving average. If the morning low holds at 3843, we will take another 25% position at the close for a total of 50%. Our stop is 10 points.
I now believe that the market was completing an ABC correction into the 20-day low (2-wave) uptrend line, and price hit that low this morning. Having tagged the 50-day moving average, it is possible that the low was a 40-day cycle low, but I will examine that later today.
I don’t have to tell you how risky the market is at this juncture. If you cannot monitor your position, it might be better to wait for a more secure entry, but it will be higher than where we are now. While my intention always is to hold our positions for a few weeks or more, that has not been possible in the current volatility.
The Nasdaq 100 has been weaker with too many cross currents, and I would rather stick to the core S&P 500 index for our Navigator buy signals for now.
It is, indeed, unusual for the Navigator to throw buy and sell signals in such a short period of time, but that is the nature of the volatility we find ourselves in at the current juncture. The volatility is not for the faint of heart.
A.F. Thornton