Today we had an unexpected timing signal change to down. Now is the time to hedge your long positions by initiating shorts on your market etf of choice, or exit all longs completely if you aren’t a fan of shorting.

I’m personally choosing to hedge for now as this is a difficult signal on a low volume holiday week to decide if this is a headfake signal and we’re going to go higher next week. If we see any strength tomorrow and my timing signal remains defensive I’ll likely use that as an opportunity to unload any longs.

If anything it’s time to become more defensive as the odds of further declines have increased and limit new long positions until the timing signal realigns itself in a bullish fashion.

Timing chart

Above is what I sent out to those on my free newsletter minutes after the close yesterday. If you’d like to access this sort of information on a more timely basis then go to zentrader.net or enter your name/email in the box on the right.

 

 

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