The Chartist Mutual Fund letter gave a sell signal today. He is going 85% in cash. This letter has been around since the 70s, and I like his actual cash account approach (i.e. he invests actual money based on his recommendations, and shows the results). He does get whipsawed sometimes. Still, over the long term his results are impressive.
Most of the buy-sell indicators I watch at stockcharts.com have switched to the sell-side over the last month. I don't really use these indicators to go all-in or all-out of the market, but I do use them sometimes as a basis to increase or decrease my market exposure. I increased my cash level to 60% by last Thursday, which is high cash for me (most of my holdings were bought to be held for life).
I suspect we have a good ways to go with this correction (bear market). Today's action was scary.
Comments
With economies slowing down, SP500 triple from bottom, SP500 death cross, why didn't I go more in cash last week? Maybe on next uptick, get out slowly.
http://www.schaeffersresearch.com/content/analysis/2015/08/24/is-it-safe-to-fade-the-latest-vix-rip?utm_source=SR&utm_medium=Link&utm_campaign=Recap
http://www.advisorperspectives.com/dshort/updates/Monthly-Moving-Averages.php
I am still within a mid range allocation to equities within my asset allocation that currently falls somewhere between 45% to 50%. A high range for me would be around 60% and a low range would be around 40%. Currently, I've got my buying britches on and plan to open, and then postion cost average into, a special investment position (spiff) as we move towards fall.
I learned many years ago in times of uncertanity and high stock market valuations sell down equities not out of equities. And, those that have followed my post through the years know I sold some of my equities down into a rising overbought market thus raising my cash allocation many months ago. Now on weakness and by my thinking an oversold market it is time to do a little buying in equities and lower my allocation to cash.
We each have our own strategies that are a fit only to us and perhaps not others. There are many many ways to have success in the markets including shorting which I do not do.
Have fun and I wish each ... "Good Investing."
Old_Skeet
Regards,
Ted