Signals February 24 2014

It has been a few weeks since we published our trade signals. Instead, positions we’ve opened/closed have been posted on our Alerts page. The long and short of the current market conditions is we have largely remained on the sidelines as our signals have been neutral for some time. However, I am finally starting to see opportunities for swing trades which are outlined in the below table.

I believe the risk in most markets is to the downside. The S&P 500 fell more than -100 points (-6%) in January, and then created a V-bottom reversal to erase all of the gains and now sits at all-time highs. The rally since the Feb. 5 low has come in the face of deteriorating economic data and low overall volume. If the breakout is going gain steam then buyers need to show up now and volume needs to increase. We’ll see what happens but the more favorable risk/reward set-up is to be short equities. Stay tuned to the Alerts page for updated positions and trades.