Warning! Indicators say stay out of equities at this time

Market forces May 23,

We had recommended investors take profits and get completely out of the market over the past few weeks but also to be prepared to buy into the next decline. However, the indicators we follow are beginning to appear more menacing. We were contemplating a 10% to 15% pullback. It is now appearing as though the markets could go down over 30% and set a new low. For our spiral (parabolic SAR) analysis we use fast, median, and slow cycles. The fast and medium turned negative and Tuesday could be the day the slow index turns negative as the MACD index switches from buy to sell. It appears highly probable that the anticipated buying opportunity will be cancelled on Tuesday before there was any actual buying.

Market Outlook

NBC/GE/Pravda's credibility has been very low, as in recent weeks they have put a lot of lipstick on some ugly recommendations. Signs were they wanted to unload their inflated investments on you and I. Well perhaps they are now done unloading because the "Wall Street money" now seems to be going negative.

We estimate we are about half way to a housing turn around with about a year to go to pass this economic crisis bottoms. And after that we will enter uncharted territory where we can only hope that the creative destruction resulting from future American innovations can offset the socialist governmental quagmire the Democrat-Socialists are creating with their domination of the three branches of American government.

We are on the sidelines now until the market re-tests its lows. NBC/GE/Pravda /Jim Cramer this week said sell stocks and get into real estate. But he changes his advice every day. His technical advisor called the last bottom and said to get out three weeks ago.