Sea change or seachange is an idiom for broad transformation drawn from a phrase in the song "Full fathom five" in Shakespeare's The Tempest, and connotes a transformation: see Sea change (transformation) - wikipedia
The past trading sessions have seen a shift in my daily charts from all-bullish-all-the-time to a mixed bag of longer term Buys and now new Sells that are spreading across a wide spectrum of ETF's and individual stocks. Is it time to become all out bearish, again?
It's time to stick to our trend models and follow their lead. As I have published, the Daily SPX Model has flipped Short. Since this is my main market gauge, this Sell carries a lot of weight. But as we have seen with charts like SDS, the shift in trend has not extended across the board. Note that the strongest market index this past year, Value Line (chart below), has flirted with Daily Sells for the past two days, but remains entrenched in its mid-February Buy signal. For the time being, that too has to be taken seriously.
Whether or not markets are exhibiting a sea change to the downside, has yet to be determined. I remain mostly in cash, awaiting a higher confidence resolution, one way or the other.
Respect the trends.
Value Line Daily Trend Model
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