It was a long time coming, but the trend change is now more evident. The question is: how low will it go? But the thing to know is that the 20 day and the 50 day moving averages have been pierced. Is this an infallible sign of a downturn? No! But it is a significant clue as to trend. I believe the trend has decisively changed. My strategy has been to sell all of my long positions and to go short the market. A more cautious strategy would be to hold cash and wait for a new uptrend. But remember the recent uptrend has lasted two full years. I expect this new downtrend to last a long time also. Enjoy the ride down! This is what makes following the markets fun.
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