Smart Money Indicator Signals a New Shift to Cash
Dan Murphy of Joshua Tree Financial publishes an email alert titled MillionDollar Target. He’s managed a private fund for decades and after research into the smart money buying in the market, created what he calls the ‘Smart Money Indicator’ (SMI). It processes the internal trading of the largest market movers and from that generates signals for medium and long term shifts in market direction. His SMI switches between long, using the ETF SPY, or short the market with the ETF TLT.
During 2017 the SMI has indicated a long in the market, but in September it signaled a switch to short the SPY, and go long Bonds via the TLT (iShares 20+ Year Treasury Bond).
The latest signal as of Monday, November 27 is very unusual for the SMI; to go 100% to Cash. So not long Bonds or the SP500, but time to sit on our hands on the sidelines. The market internals appear to be very ambivalent and in the past such internal weakness can foreshadow a market correction that surprises the Bulls.
Consider laying in a hedge to protect your portfolio such as I outline in my free e-book, “Black Swan Protection for your Stock Portfolio”. You’re invited to drop Dan Murphy a note and ask to be included in his free monthly email SMI alerts. He has an amazing track record.
You can contact him at; firstname.lastname@example.org .