Despite today’s sharp sell off, which was reminiscent of the one we experienced on February 27, our Trend Tracking Indexes (TTIs) stayed above their long-term trend lines, and therefore in Buy mode.
Both TTIs gave up ground, but are remaining above their dividing lines to bear territory as follows:
Domestic TTI: +2.79%
International TT: +4.12%
Due to the recent market rally, most of our sell stop points were not triggered. However, some small positions we held in FEZ, IWS, RYZAX were affected and will be liquidated. Further downside action will most certainly get us out of our Latin America holdings. Last Tuesday, I sold our “utility” positions due to lack of performance.
Track your sell stops, watch the major trend lines and don’t get caught up in the media hype.