3-4-25-SPX

What a difference eight trading days can make. The S&P 500 came up to reach a new high 8 days earlier only to reverse course with a hard sell off.  We were stopped out of several holdings last week and have built up about $1.8 billion in cash. The HCM-BuyLine® has weakened, and we are monitoring it closely to see if further reductions need to be made.

We have gone a long time without a 10% correction, and as we all know, they will happen. Could this be a correction or just a lot of volatility from geopolitical news?

We are oversold, so there could be a relief rally in the making, and we will see if that holds. Even being stopped out, we know the market will turn back up, we just don’t know when and how far it will drop before that happens. Markets need to correct and consolidate from time to time to move up, so this should not be unexpected. Building up cash gives us the chance to look for opportunities as the market stabilizes.