An interesting market indicator

This is one of the most important fundamental indicators we have developed to understand the direction of the market (click on the chart to enlarge it).

Note how the market goes nowhere when our financial risk indicator is rising and rallies strongly when financial risk declines. We went back to 1955, and it seems to be working just fine.

You should not be excessively exposed to the market if its trend is moving higher.

You will find this chart updated regularly in The Peter Dag Portfolio. Just go to www.peterdag.com and subscribe. Of course ... past performance does not guarantee future results.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.