Yesterday, Stock Timing Tech generated sell signals in the Dow, NYSE Composite Index, Nasdaq, the S&P 500 as well as the Russell 2000. One can justify the pullback with many geopolitical factors such as the upcoming Presidential election, Covid-19 coming back into play and cases increasing in rural markets across the country, unemployment numbers etc. You get the idea. However, if the market instead, was up strong, we could also come up with reasons to justify the uptrend. So here at Stock Timing Tech, we let the signals take us into the market and individual stocks and we let the market take us out or at least step to the side and wait it out for further confirmation signals.
Right now, as of yesterday, our signals suggested to step to the side. If you are long, now is a good time to take profits if your stock begins a pullback. If you choose to stay long, then please tighten up your stops to be sure to lock in any profits. If you are short, stay in those trades and wait for the buy signals to initiate covering your positions. Let’s get into cash and wait for the markets to decide and tell us, when we should get back in with the least amount of risk.