Wisdom Defined: "The soundness of an action or decision with regard to the application of experience, knowledge, and good judgment."
This Months Green Arrow? Take it or not?
As I showed you in the prior post that this is a period similar to 1990.
It is volatile and this volatility will certainly end.
None the less, it is up to each and everyone of us to make our decision to enter the markets or not.
So, I will tell you what I am doing myself and why. You then can make a decision for yourself.
"I am staying in cash to see next weeks signal, if it remains bullish, or no weekly arrow I will enter with 10%." The reason . . .
. . . is that this green arrow was created during the months 3 prior weeks. In fact the end of this last week proved bearish, or more closely to the prior red arrow and I am not convinced that the bullishness was not a reactionary spike before the descent starts again. Secondly, for most of this Friday the green month end arrow disappeared. It was only within the last hour that the market rallied back a bit confirming a month end green arrow . . . and by only 2 points.
I do not fight the market as it does not lie. However, there are specific times that will test even the most disciplined and experienced.
This volatility is telling you something as I wrote in my last alert. It will end shortly as it always does . . . the BOOM one way or another! And you will either be protected or profitable!
Here is an additional option for you to consider as you make your personal decisions:
The Evergreen Strategy
When a red arrow appears in the index fund your are holding, exit the position. Immediately seek a green arrow in another investment that appeared and enter that position. If there is more than one green arrow available, diversify and spread the wealth.
Recently, Gold, Silver, and several Country ETFs delivered green arrows and have made substantial gains.
Thus, the Evergreen Strategy is an option for those who do not like to remain in cash or take inverse positions.
There are always green arrows available . . . its a great big world out there with opportunity for growth at all times.
Take look at an an email I just received from one of our subscribers:
Within an hour of the first email, she sent me this:
You do not have to sit on the sideline.
The Evergreen Strategy can work for you as well.
Remember to be cautious when entering any position and NEVER act on fear or greed.
Act wisely and diversify.
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