The markets have been bouncing around for the last couple of days trying to recover from last weeks one day sell off. But, today we have had another break to the downside. This action has gotten my attention, it could be the precursor of further market declines. The question is whether this will be a final top or if we will just have a significant correction followed by a more significant bubble phase in the market once this correction is completed.
As you can see the VIX volatility index is moving in the opposite direction from the markets, with a 30-40% move to the upside just today. As I mentioned in my previous post, this can be a good hedge against falling markets.
Considering how long this market has been propped up, the Fed tends to do that, we could see a quick decline in the markets. The question remains as to whether the markets will rebound and complete the blow out bubble to the upside before the markets move into our next bear market. It is a time to be proactive with your investments. Individual stocks do not peak at the same time, many have already reached their bull market highs. The service that I provide to my Mexican friends focuses on protecting your assets by the daily monitoring of your assets. Advising on when to take profits using trendlines and other technical measures. The fee for my services is .15% of the assets that need to be monitored. I will be writing more about my services in the future. Most wealth management services are in the area of 1-2% so this is considerably more reasonable and you have someone that you can talk to right here in San Miguel de Allende.