Author: John King, Quacera
Covestor model: QPM Radar
We ended March with concerns that the markets would begin to weaken because our early warning system was flashing the yellow caution signal.
Our QPM Radar™ began to slip from its 99% positive position as the month closed. We began April 93.26% positive — not a big drop from the highs. The early warning might be a false signal. But it is better than trying to guess, which is the strategy of many prognosticators.
Many of the economic positives of Q1 began to flatten as the month unfolded and some went into reverse. The Fed signaled that it would, in fact pause. That’s something we suspected might happen.
Our system continues to warn us that things are getting jammed up. The markets have been living on the feeding system of fiat money for so long that getting weaned from it might be difficult, at minimum.
Several of the big winners of the first part of the year have begun to falter and a full blown correction looks like it is beginning. Our QPM Radar™ closed the month at 66.32% positive and the warning lights are flashing.
Go to: http://www.quacera.com/portals/22792/flash/universe.swf to run the price & momentum Radar Player for the past 20 days.