Reduced “Slow Money” exposure at these price points

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The Power of the Pattern suggested to pull some "Slow Money Long Exposure" off the table at the blue arrows above.  One of our goals is to help financial professionals and investors who don't care to trade very often (ride established trends). Slow Money Signals are available with several of our research reports.

We call assets that aren't designed to trade often or have trading restrictions (401k plans), slow money assets.

My Shoe Box indicator, High Yield fund patterns, Advance/Decline and a few other tools suggested that Slow Money accounts pull some long exposure off the table a few weeks ago.

This was the first suggestion to do so since a buy signal (be fully invested) took place for slow money assets last September. 

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Are Stocks about to “Catch Up” with Yields?

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In April, 100% of economists thought interest rates would rise (see here), How is that prediction working out? Joe Friday felt differently, just 90 days ago he thought interest rates would decline another 20%. (see here)  

A common theme this year has been....Yields and Stocks have detached, yields are way out of touch. The above chart reflects that the yield on the 10-year note has declined 23% year to date, while stocks are up 2%. 

Are stocks about to play a game of "catch up" with yields? The chart below reflects that the yield on the 10-year note is at a very key technical price point!

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The yield on the 10-year note finds itself at triple support and its 38% Fibonacci retracement level at the same time. What happens to yields here could have a profound impact on stocks, in either direction.

IMHO, "it's all about what yields do going forward!" 

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Fear Index (VIX) about to pull a “Dante’s Peak?”

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Dante's Peak is a 1997 American epic disaster adventure film directed by Roger Donaldson, starring Pierce Brosnan, Linda Hamilton. Dante's Peak, Washington, a fictional small town is situated near a dormant stratovolcano in the Cascades.  The town would not listen to the warnings from Brosnan, as he felt signs were in place, suggesting the volcano was about to blow its top!

The above chart takes a look at the Fear Index (VIX) and how its facing dual resistance at (1), with momentum fairly high, compared to the past few years.

IMHO, what happens to the fear index in the very near future is important to ALL of us, regardless of how YOUR portfolio is positioned at this time.

Is the VIX peaking right now or is it about to blow its top?  Stay tuned, the outcome could be very important! Key moves in VIX and XIV could be right in front of us! 

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