Up or down? I'm not sure!

 

There are all sorts of mixed messages in the market, I think. Is the market rising or falling? Should I buy or should I stay in cash? Having a system makes it 'easy' as all I should do is to follow the 'rules': buy when the price closes above the green line, and sell when it closes below. But it is tempting to bend the rules and buy when you think the price is rising from a significant low and the asset class can be bought at a massive discount. Find out more below. There is a short (less than 3 min) video at the end of this post.

STOCKS. The investment trust that I use to get exposure to stocks internationally is well below the green line. This week it rose up significantly. I'm tempted to buy in and get it at a discount. But will it fall further?

PROPERTY. My property investment trust rose up quite a lot this week. Not quite enough to trigger a buy signal, sadly. Again, I'm tempted to buy, before it rises up loads more! But there may be a good reason why it didn't close above the green line......

GOLD. My gold fund has fallen quite a bit this week. To me this suggests increased confidence in the stock market (as above). The gold price is still above the green line however, so I'm staying invested!

COMMODITIES: This fund is significantly above the green line. Its doing well. It's doubled in value since the summer of 2020

CRYPTO. For my trend trading I now use a 'proxy' for crypto, as I can't hold my cryptocurrencies in tax-advantaged accounts. My proxy is a well-known US stock that will go up and down with the rises and falls of the major cryptocurrencies. Overall I am very bullish about cryptocurrencies and although cryptocurrencies have fallen from their peaks of last year, I think that they could do extremely well in the future, so I plan to simply hold onto my crypto investments. The crypto 'proxy' is below the green line, so I'm in cash here. I'll let you know when I get a BUY signal, of course!