Here's another chart to show you how important it is to watch the OIH (Oil Services Holder) as compared to the S&P500 Cash Index.
When the price of oil service companies rise too far relative to the rise in the S&P500, it represents a time to shift funds out of the S&P500 and into cash. And when the price of OIH drops severely relative to the S&P500, then it becomes safer to buy into the S&P500.
It can take a month to six months for these setups to play out. No indicator is perfect, but this has stood the test of many market cycles.
Regards,
Tim 1:55AM EST, May 29, 2014
When the price of oil service companies rise too far relative to the rise in the S&P500, it represents a time to shift funds out of the S&P500 and into cash. And when the price of OIH drops severely relative to the S&P500, then it becomes safer to buy into the S&P500.
It can take a month to six months for these setups to play out. No indicator is perfect, but this has stood the test of many market cycles.
Regards,
Tim 1:55AM EST, May 29, 2014
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