September 21, 2020

Raise Cash

Consider increasing cash on bounces.  See ‘Protection Bands and What To Do Now?’ section below.

The Chart

Please click here for a chart of S&P 500 ETF (SPY).

Note the following:

• During the rally, the price never touched the trendline.
• There is another downward push this morning.
• The price did not stay above the breakout line for long.

Politicization Of Judiciary

After Ginsburg’s death, the judiciary in the United States may get politicized beyond an important threshold.  This is a negative.  Here are the key points:

• The U. S. has been able to borrow and print money without significant adverse consequences so far because the dollar is the reserve currency of the world.