Monday, January 5, 2015

Signal Change, Close of Monday, Jan 5

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Short entry here since I'm traveling.

With the close of markets today the intermediate-termed timer transitioned to "Mixed" mode.  This is an early warning sign, and continued dropping in the markets will most likely cause this to move to "Cash".  We're not there yet, but it's close:

The table indicates that the short-term timer also transitioned this past Friday, so clearly, it's time to raise cash.  I'm dropping back to 66% invested with the signals indicated above.

The LCR table is still strong, despite the intensity of the sell off from today:


Noteable is that out of nearly 1000 down days recorded, today was the 57th strongest down day in terms of LCR (Long-Cash-Ratio) change.  This is significant.

Strategy:

Simply put, the short-term signal combined with the "mixed" intermediate-termed timer indicates that we should be 33-66% invested.  I'll get there by selling my weakest positions, and I'll use a 1% trailing stop loss, GTC, effective after 9:45 a.m.

Regards,

pgd