Since going to a 50% equity position on January 6, I continue to see weakness that corresponds with the macro indicators I follow (e.g., commitment of traders, weekly RSI). I wouldn't be surprised, however, to see a rally to what I believe will be a intermediate peak sometime between January 16 and 28. I will be using my options model to assess when I pull the next trigger which will be a reduction of my equity position to 33% that's comprised of a mix of 11% alpha/core and 22% dividend paying/low volatility ETFs -- a "defensive" 33% mix. Please note that this 33% equity position is the lowest level that I plan to go to for my long-term portfolio during the anticipated weak period from February to May. I've already taken profits on my cash (trading) account.
More later on the timing of the next move.
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.
