Over the past few months the stock market has been a roller coaster with a downward trend. The question is, “has it reached the bottom of the platform so it can begin climbing again?”
In other words, Is it time to be in the markets? Most of my software strategies said to get out in early August. But when do you jump back in? When is it time for safe investing?
The answer depends upon how aggressive or conservative you are.
Here are two charts that I am looking at.
This is my normal Equity Curve for the S&P 500 – based on 100 trading days (about 5 months) which signals to get out of the markets early this past August (2015):
But here is a two month Equity Curve of the S&P 500 that now signals it may be a good time to start buying again.
Obviously if you are truly conservative you should pay more attention to the 5 month equity curve, but if you are willing to take a few risks, the 2 month curve seems to be saying “buy now
Note: Charts are from Dynamic Investor Pro investment software which I use for safe investing.