FEATURED EXPERT: Jack Schannep
26-OCT-07

Jack Schannep, editor of the Schannep Timing Indicator newsletter, explains why he still remains comfortable with a 50% in the market and 50% in cash position. Read this featured expert's recent commentary "Serious Divergence" to find out why his standpoint remains unchanged

BOTTOM LINE from October 1

The COMPOSITE Timing Indicator:  The previous Signal was a Buy (GREEN) with an average “cost basis” of 10,932 but now with the Dow Theory Sell signal at 13,028, this Indicator is in a 50% invested, 50% in ‘cash’ position (YELLOW). It is likely to stay in this stance until one or the other of the above Indicators changes. The Conference Board Consumer Research Center has just reported that “The Consumer Confidence Index is now at its lowest level in nearly two years. Weaker business conditions combined with a less favorable job market continue to cast a cloud over consumers and heighten their sense of uncertainty and concern. Looking ahead, little economic improvement is expected and with the holiday season around the corner this is not welcome news.” Add to that the increasing cost of crude oil and it is hard to fathom what the stock market has to look forward to. Perhaps it is ‘looking across the valley’ and the double top in the stock market will turn into a double cross, but for whom, the bulls or the bears? Yes, a 50% in the market and 50% in cash is comfortable for now.
 

* * Reprinted with the permission of  Zacks * *