I’ve been very bullish on the stock market … but this intermediate cycle is getting very long in the tooth. We made enough on our last stock trade to outperform most hedge funds over the entire year. That being said I’m close to being ready to get on the sidelines in stocks and just wait for the inevitable correction that’s bound to come sooner rather than later. Last year the intermediate cycle low came in August. There’s a good chance it could do so again this year.

Once we get past the FOMC meeting on August 1st traders should probably exit and go to the sidelines. We might even get a minor pullback into a half cycle low next week. That would probably be the last buying opportunity and it would only be for a short term trade.