T-line rule – as long as the indexes are trading below the T-line, it is assumed the downtrend is in progress. This does not necessarily mean everything is going down. There are still some sectors that are maintaining their strength but numerous stocks have demonstrated strong sell signals over the past few days. This would imply having additional short positions in the portfolio. Maintaining long positions still require not seeing a close below the T line.
January 29th Daily Market Comments
T-line rule – as long as the indexes are trading below the T-line, it is assumed the downtrend is in progress. This does not necessarily mean everything is going down. There are still some sectors that are maintaining their strength but numerous stocks have demonstrated strong sell signals over the past few days. This would imply having additional short positions in the portfolio. Maintaining long positions still require not seeing a close below the T line.