Another steep sell off has moved our Trend Tracking Indexes (TTIs) within striking distance of an all out Sell signal.
As of today, the TTIs are positioned in regards to their long-term trend lines as follows:
Domestic TTI: +0.87%
International TTI: +0.34%
Over the past few weeks, I have been liquidating those holdings that have triggered our sell stop points, and I will eliminate a few more tomorrow. My guess is that by the time we receive an all out Sell signal, we will have moved most of our assets to the safety of the money market accounts.
With the subprime fallout taking more prisoners almost daily, interest sensitive instruments like tax-free ETFs have been shook up as well. It seems that there currently is no orientation that is exempt from catching the down draft. I have started and will continue to liquidate those positions that have performed the worst.
If necessary, I will post more updates after the close of the market on a daily basis.
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