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Now, sometimes the “short-term” turns into the “long term,” so we’ll monitor what unfolds in the next few days. And keep you posted if conditions change.
But my experience tells me we’re not out of the woods yet. At least, on a longer term basis.
Now, you’ve likely heard me say that “support line” breaks are pretty important, right? And, you also heard me say “we get double bottom sell signals periodically — one double bottom sell signal is not the end of the game. But triple bottoms can be significant.”
Well, hey, if TRIPLE bottoms can be significant, then what do you call a QUADRUPLE bottom?
Ummm, PRETTY significant?
OK, stay with me here. Now, about 70% of ALL money in equity mutual funds sits in the same 500 stocks. We saw a spread quadruple bottom break — “pretty significant” right? — AND a support line break on the S&P 500 Index recently.
THAT got my attention.
Now, this week, the S&P 500 recovered — quite a bit, in fact. So, again, the short term may bring a reversal, we’ll see. But that support line that was broken — goes all the way back to 2003. Again, THAT got my attention.
Also, China and Latin America, which have done pretty well for us this year, are weakening. Longer term, they still look “ok” — but understand, they’ve gone from red-hot to “ok.” It doesn’t mean that game has ended, they might just be taking a breather. Again, we’ll be keeping you posted.
Sincerely,
Tom
Thomas Mullooly
Mullooly Asset Management
P.S. The object of this is not to scare or shock you, but to keep you aware. For weeks, the message has been the same: if you have ANY questions or concerns about ANYTHING in your account, pick up the phone and call 732-223-9000 right away.
So, let’s hear it!
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