Because of the heightened volatility, it's possible that my confirming indicator will trigger before I have an opportunity to update my macro indicator on Friday (at 12:30 Pacific Time). I believe that my macro indicator will decrease further and there's a high likelihood that it will fall to -20 or lower. Therefore, I'm prepared to do the following BEFORE I get a macro indicator update:
If the S&P 500 breaks 2759.18 to the downside, I will sell "Alpha" -- specifically, my 20% exposure to the S&P 500 index and all high-beta (tech stocks).
If my macro indicator does fall to -20 or below on Friday, I will execute the second part of my strategy and sell PROFITS (only) of any dividend stock which show paper profits of greater than 10%. Based on my portfolio analysis last week, this sell strategy will leave me with an equity exposure in dividend stocks of approximately 50%.
Stay tuned.......
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.