Steady selling all week in this first business week of the fall season, together with a close below the 21-day EMA on the S&P 500 index, is cause enough for the Founders Group to return to an all-cash position, exiting all of our calls in the XLF, XHB, XLE, IWM, and QQQ. While these positions are not violating their 21-day lines, we appear to be heading into the 80-day cycle low a bit early. We are getting little, if any, lift from the 20-day dip. These other sectors are likely to join the fray, and we don’t want to wait until the last minute. We will regroup over the weekend.
AF. Thornton.