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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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From: OldAIMGuy7/11/2025 10:08:43 AM
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Let's open with an investing haiku............

Back flirting Caution
Fundamental limits stretch
In "Spandex" market.


That should set the tone for what we're seeing in the SignalPoint MRI and the v-Wave for this week. Three of the MRI's components rose in risk measure this week. Currently there are three neutral and only one cautious (Relative Valuation) but the Speculation Index is now borderline cautious also.



Overall, the MRI is close to crossing into its composite "caution" range. The MRI Oscillator shows +5, indicating significant upward risk pressure. Suggested Cash Reserve is 32% again this week (for diversified portfolios).

The v-Wave, based in Value LIne's "Appreciation Potential" data, is unchanged this week for the 3-5 Year time frame. Risk rose this week for the shorter term 18 Month horizon, however. Again, it seems to indicate the market recovery is a bit too much, too quickly. The v-Wave remains at 33% suggested cash held in reserve. The shorter term v-Wave rose 5 points.



So, it appears the fabric of the market is being stretched a bit. This doesn't mean it's about to go down. What these two indicators suggest is that upside potential is somewhat limited currently. We've seen many times in the past where markets can exist at relatively high risk for long periods and even advance. The risk level does suggest that limiting one's portfolio value expansion might be wise. To me, this is a time to make small, incremental sales to keep a lid on dollars at risk. The cash generated has a reasonable yield while we await an opportunity to re-deploy it.

Best wishes,
OAG Tom

Buy from the Scared; Sell to the Greedy.....
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