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Still in Cash

|Includes: SPDR S&P 500 Trust ETF (SPY)

Prior to the market open on May 6 we noted the model portfolios were going net short. And prior to to the market open on May 7 we suggested people go to cash or go all-in net short by closing out all long positions, due to sharply rising volatility. The models were rehedged with long positions on May 18.  

We are still 100% cash in an IRA portfolio, and it will continue to stay that way until a technical long signal is generated by our models. Hopefully the trades of this IRA will be able to be mirrored by an auto trading service soon, perhaps as early as tomorrow.  We continue tracking the model portfolios, and are working on a way to distribute free and premium versions in a newsletter format.

Meanwhile, we see no rush to go out and put money to work on the long side or short side.  There is simply too much volatility out there to make any good call longer than a day trade, so at this particular moment we suspect that the IRA portfolio will probably be in cash for quite a while longer.    

Disclosure: none