With the events of this week, I'm anxiously awaiting market data to update my macro indicator -- the data is published every Friday at 12:30. Given the possibility that I will get a sell signal on Friday, I wanted to share what I plan to do. Consistent with my overall strategy, upon a sell signal, I will:
1. Sell my holdings in market-beta (S&P 500 index) and all high-beta (e.g., high tech stocks) - this
comprises about 20% of my portfolio
2. Sell profits in all dividend stocks which have appreciated 10% or more - dividend stocks comprise
about 80% of my portfolio
Note that a sell signal will encompass two elements: A macro indicator reading of -20 or less and one other long term technical signal (e.g., negative weekly RSI divergence).
Given that fact that your investment strategy differ might differ from mine, you should contemplate ways to reduce risk and at minimum, rebalance your portfolio. Some of you that subscribe to my email updates will get this post Friday morning. If I get a sell signal, I will try to publish a short post shortly after 12:30 on Friday -- note that Google distributes email updates one day later. My capabilities to publish an update will be hampered by the fact that I will be traveling tomorrow.
Follow signals from the Prophet4Traders system to identify turning points in the U.S. stock market
The purpose of this site is to share results of a trading system that I use for identifying both long-term and short-term trading opportunities. I take the time to do this because of my passion for investing and helping others succeed. The system helped me avoid the "Crash of 2007/2008" and every major correction since then. The cornerstone of my trading system are analyses of market liquidity to gauge longer-term market sentiment and equity and index options (put/call ratios) to identify short-term entry and exits.
This site is for information purposes only. Past performance of the trading system is not a guarantee of its future success. Please consider consulting a qualified investment adviser before making investment decisions.