I was listening the other day to a well-respected analyst and newsletter editor who has been pounding the table that the market is due for a blow-off move to the upside. He calls it a melt-up. He might be right, writes Mike Turner.

There’s another well-known analyst who is sure that the current correction will expand into the largest bear market of this century. That’s quite a statement, but he’s also been pounding the table hard on his stance. He also might be right.

Who do you believe?  Are you confused?

That’s the problem with making your investment decisions based on what other people are guessing. Is the melt-up guy going to be right this time or is the bear market guy going to be right? Or is another “expert” going to be right?

And, here’s the big question: if you choose the wrong side, whose fault is it if you lose money, significant money?

To be honest, I’ve got an opinion also. But my opinion doesn’t make my clients or me any money. My signals make us money.

And right now, my signals are saying that being in cash is the best place to be.

No guessing, no hoping, just following the signals.

Here’s the latest chart I send to my clients on a weekly basis. As you can see, the composite of the major market indices is just barely inside the bottom of the yellow Transition Zone.  And with last week’s action, it could close in bearish territory at the end of the week.

chart

If it does close below the Transition Zone, that doesn’t mean I’ll go all-in on inverse ETFs. I’ll slowly work my way into the inverse positions to be sure the bearish trend holds and strengthens. I’ll never put too much of my clients’ monies at risk when we change from neutral to bearish (or neutral to bullish).

So far, that’s been working quite nicely. All of my portfolios are positive for the year and my Tactical Growth portfolio is up 11%. Are you doing that well?

Don’t forget, the MoneyShow Orlando is just a few months away in February and I’ll be playing a big role in helping investors get back on track after this latest downward move.  For more information, click on the link below.

The Orlando MoneyShow – February 7-10, 2019.

If you’re interested in learning more about how I manage money using the Market-Directional Investing methodology, you can read more here.

Mike Turner: how to measure a market, in a short video.

Recorded: MoneyShow San Francisco, August 24, 2018.

Duration: 4:22.

Mike Turner: Rule 1 of Investing, his new book in a short video.

Recorded: MoneyShow San Francisco, August 24, 2018.

Duration: 3:42.