What to Do When Markets Are Stuck in a Trading Range| 3:00 on Markets & Money

(6/8/22) Markets have not gone much of anywhere over the past seven days; markets opened lower Tuesday, coming off support established last Monday, and closed up almost 1%, back towards the top of the trading range we've been in for the past week. The challenge is how to make some traction as the markets address three problems: Markets have rallied to the top of a trading range, which is at the same level as April & May bottoms; the current buy-signal is getting over-bought, and beginning to narrow; and as the 50DMA comes down to the top of the trading range, it creates another level of resistance; as markets continue to move sideways, more and more downward pressure is being applied. This is why we have been suggesting raising some cash--and we followed our own advice yesterday, building a short-market hedge if markets start to break to the downside, setting up a re-test of the lows of early May. With more and more economic indicators pointing to a slowing economy, and the Fed beginning to tighten monetary policy, there are plenty of reasons to remain concerned about market stability. But, if markets DO move to the upside, it's a simple thing to remove those hedges and put our cash back to work.

Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
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