When to think about shorting the market
Guys:
A few people have expressed opinions that shorting the market here might be a good idea. There are two charts I give weight to when considering such action and neither chart is of my making. The first chart was composed by some forgotten stockcharts guru which I have found to be pretty accurate. I believe this forgotten person called it the “perfect indicator”. Bottom line, don’t think about shorting this market until the NASI turns down towards the moving average.
A second chart I would consult might be David Larew’s Vix model. Don’t sell or sell short until the Vix model is showing green in the window.
Thanks Jim, trading VIX related ETFs require surgical precision. Wish the lower chart had the settings denoted 🙂
Me too Eagle, but he’s a bit secretive. Here’s the link:
http://stockcharts.com/public/3421479/chartbook/465662502