We got a sell signal on our Momentum Leaders Stocks Index. This means we should be 100% in cash at this time. This index lost -4% from its BUY to SELL signal. If we were doing prudent money management, we should have lost less than the index or maybe made some money. Prudent money management would have been to start selling weak stocks when we got a sell signal from Market Breadth Ratios (on 5/3/2012) and holding on to that cash. This in effect would have gotten us more and more into cash as this correction proceeded instead of waiting till today, when we got the sell signal.
We also got a sell signal on IWM (ETF for Russell 2000 index, representing small cap companies).
We also got a sell signal on General Market Index, with a slight gain of 0.7% from BUY to SELL cycle.
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