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Feb. 1, 2016, 4:30 p.m. EST

Keep your powder dry and stay in cash

By Bill Donoghue, MarketWatch

“May you live in interesting times;” so says the so-called Chinese curse. As you might have figured out, there is no such Chinese source or even a way to say that in Chinese.

If you were wise enough to take my advice in recent weeks to stay in cash, you have probably earned a positive return or broken even. As you can see, for both the Sector ETF and PFI’s Best portfolios the four-week, 12-week and one-year track records of the mechanical technical trading system are negative.

So the advice has been sound, the strategy is as expected not productive in a stock-market topping out and with little fundamental good news. To watch America play chicken with ISIS with little effective defenses from both foreign threats and excessive unwise and illegal immigration from a passive administration which does not approve of America’s fundamental strengths does not bode well for the stock markets. The market correction reflects the rising risk in the marketplace and the rising risk of the survival of the America Dream.

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