Friday, December 4, 2015

Raising Cash Position


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With the close of markets on Thursday, December 3rd, there has been a transition in the short-term timer, indicating that I should be increasing my cash position and not purchasing stocks at the present time:


With the short-term and intermediate-term timers in CASH, but the long-term timer still on the long side, it's okay to hold some positions but certainly, buying right now is not a good idea, nor is holding onto stocks that have a major loss at this point (they most likely will continue to drop).

The Long-Cash Ratio indicator shows that Wednesday showed a reversal in sentiment, and that Thursday was a follow-through on this negative view:


The right side of the table is solidly red, indicating that all moving averages were slowing in a negative manner.  The left side of the table confirmed this (in part) on Thursday, with the shorter time frames all moving into negative territory (pointed down).

This same picture was provided by my cumulative tick indicator:


(click on the image to enlarge)

With 52-week New Lows exceeding 52-week New Highs (top plot), sustained selling both days (middle plot), and now the instantaneous CT (white) pulling the averages to a negative slope (all pointing downward), this isn't the environment that I like to purchase stocks.

Many of my positions are doing fine, but some are clearly underwater:


(click on the image to enlarge)

Strategy:

1.  Unload the GGT positions that are transitioning to Cash.  The file indicating this information for December 3rd (only) can be found here.
2.  I've cancelled all pending purchases; waiting for the right side of the LCR table to turn green.
3.  Possibly unload positions that are underwater.  We'll see.

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Here's how to find me:

Stocktwits/Twitter:  grems8544

Greenfield Dividends: https://www.collective2.com/details/94780986
Greenfield Leaders: https://www.collective2.com/details/94921209
Greenfield Low Beta:  https://www.collective2.com/details/95702992

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As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.

Regards,

pgd