I update my Market Timing Model daily and the only conclusion I can draw from it is that the markets remain nuts. My proprietary volatility indicator remains near its all time high and fluctuates between a reading of 1.9 and 2.1 (its all time high was 2.2) on a daily basis. Bill from Vix and More hit the nail right on the head when he wonders if the markets are at a cross road. No one really knows if we are truly in a bear market or if we remain in a bull market.
What I do know is that most of money still remains in cash and bonds, about 50% now, and I'm looking to put more of it back to work. The trick is figuring out when to put it work, will I be buying into the next massive sell off or will it be on dips in a sustained rally?
I'll be emailing my members a snapshot of my Market Timing Model this weekend, sign up here if you want to get it.