Based on the historic patterns of the unemployment rate indicators prior to recessions one can reasonably conclude that the U.S. economy is currently not close to a recession. The indicator pattern is consistent with those from prior in-between recession periods.
Modified S&P500 Coppock
The modified Coppock indicator for the S&P500 has signaled a continuous stock market investment now from May-22-09 onwards only interrupted for three weeks from April-23 to May-14-10. This indicator can only provide buy signals and stays invested until the S&P has gained 38% or for 48 weeks after a buy signal, whichever comes first. If a new buy signal is generated during an investment period, then these criteria apply again from then onwards.
This model will stay invested at least to the end of this year.
Leave a Reply
You must be logged in to post a comment.