One of our quant models is still on a technical sell signal. The fact that it has not yet flipped to a buy signal is giving us some pause.
Typically, the two quant models fire their buy and sell signals at different times. That is intentional. That's why we use two different models.
But the fact that the second quant model has STILL not flipped back to a buy signal, is causing some concern.
Maybe the first signal was wrong?
Again, this is why we use two different quant models.
By the way, we follow other technical traders too and we know that some of their models are also still on sell signals. So it's not just our model! And that's telling us something. It may be nothing, but we at least need to pay attention.
As a result, we start looking for additional evidence that suggests that we are still in a bear market. We are always try to find evidence that our initial conclusion was wrong. There's too much at stake.
One of our philosophies is to always be ready for the other side of the trade. In today's short video we show you a couple of pieces of evidence that are not suggestive of a bull market.
So, perhaps the bear market is still alive? Perhaps, don't be so fast to shift into an aggressive posture.
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