If you haven't noticed (and hopefully you haven't...far better for you to focus on your day job or your retirement and leave it to professionals like High Rock to worry about), stock markets around the globe are starting to give up ground. To us, it looks like they are breaking down technically.
Among a host of other reasons, which Scott highlights regularly in his blog and our weekly webinar, one reason for the stock market weakness might just be the offshore Chinese Renminbi weakening vs the US$. Higher on the chart is a weaker Renminbi. When the Renminbi weakens (don't forget, it is pegged to the US$) it usually means that Chinese economic growth is weakening and the PBOC wants to weaken off their currency to spur exports. A sign of weakness in China.
As mentioned, I think there is a host of other reasons for stock market weakness like....Fundamentals!!! Remember what those are? Regardless, here is s snapshot of the Dow:
Busy chart. The upward white line looks to be broken. What we will look at now is retracement targets on the downside. The first stop should be at 17,460 or about 540pts lower than today or about 3% lower. then we will look at 17,085 which is 5.1% lower than today and after that, we will look at 16,712 or about 7.2% lower than today.
Is your portfolio ready? We think ours are given our high cash weighting, underweight to global equities, diversified approach with a solid fixed income weight and our tactical trading.