The major indices closed significantly higher yesterday and unlike other up days we've seen in August, overall volume was higher. This indicates that institutions ("Big Money") now view valuations to be compelling and are stepping in to buy stocks. Measures of investor fear are also beginning to wane.
A potential Window of Opportunity (WOO) is opening here, giving us an opportunity to buy stocks at compelling valuations. There is no way to know in advance how long this potential uptrend will last, or that it will even take hold.
Regardless, the return vs. risk ratio has now improved significantly to the point where today I'll be investing 25% of my managed accounts' capital in the model portfolio shown here. Over the coming days, I expect to eventually increase this to the target allocation of "50% invested" and then hold there while awaiting a fresh BUY signal from the DecisionPoint timing model.
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