first majestic silver

Investors Weekly Update

Technical Analyst & Editor
November 16, 2013

Our equity/bond model - This long term reliable investing model provides investors with simple decision making in the markets:

-When the model favors stocks, investors should overweigh in equities for maximum growth.

-When the model favors bonds, investors should overweigh in bonds for safety.

 

Our benchmark S&P500 is on a major buy signal since early 2012.

Oil sector is on a major buy signal since early 2013.

Special observation

The tech bubble seems many moons away and some may have forgotten the pain.

A parabolic rise occurs at the end of a bull market and when it ends, it will be ugly.

The recent bull market and parabolic rise in the gold market ended no differently.

Summary

Current investing model favors equities and both the growth and energy sector are on major buy signals. Investors should wait for corrections in the markets to enter or re-balance their portfolios. However, there has not been a multi week correction in the major indexes for a year now, which causes me concern as a parabolic rise occurs at the end of a bull market, due to sidelined capital pouring into the markets in fear of missing out. Those who are late to the party are often severely punished. Time to manage your risk.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple investing model which provides us with simple investing decision making. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets.

We also provide coverage to the precious metals sector.

Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.


The average human body contains 0.2 mg of gold with the bone containing .016 ppm and the liver .0004 ppm.
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