The Baltic Dry Index is climbing at a steep slope. The dollar is declining at a steep slope.
The S&P 500 is showing signs of exhaustion while gold and silver are plowing higher. At the same time, we are seeing a volume dry up for stocks on the NYSE and the Nasdaq. Fewer all times highs, but the moving average for the advance/decline on the NYSE is not showing an overbought position.
Vote for The Disciplined Investor Podcast for 5th Annual Podcast Awards
The Price Oscillator for the S&P 500 is beginning to cross down for the first time since March.
Bullish sentiment is off of the charts, usually a contrarian indicator. There are many mixed signals, but it does appear that there could be a correction coming sooner than later for stocks and commodities.
TDIMG portfolios are currently hedged with 10% Short Russell Small Cap (RWM) and 5% S&P 500 Inverse (SH) – along with 25%++ cash. Until we see a breakout on volume, we believe there is potential risk to the downside.
(Click each chart to enlarge)
Looking to invest in The Disciplined Investor Managed Growth Strategy?
Click below for the 14-minute virtual tour….
Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.