Just one word, SELL!

Should I take my loss or stay with my loosing position as market goes against me! Well, a couple of days after my last recommendation (to SELL), that was exactly the question I was asking myself as markets shot up!
A small voice in my head started to tell me I was wrong and to take my loss... 
Well, you must not let your emotions take over (dare I say like everything in life...), pick some indicators that are built differently and not too correlated, watch how they behave, know their weaknesses... I have 5-6 indicators I have been using for ages, and they are pretty reliable...Bollinger bands, Stochastics, MACD, Moving Averages, Parabolic, and Fibo retracement...They "told me" that the rally in mid March was not sustainable and that we are heading towards last year low in the next 3 months, ie 15-20% downside.... Then, though not clear yet, I think they will tell me that we will touch 2009 lows.... SELL SHORT....
If you care, I have no long position in any equity.. Cash and one big short in the French CAC40... 


Eurstoxx 50 Index weekly: reversed

The week after my sell, we had a one week shot up above a resistance, a "bull trap". Momentum is downwards, with index testing the 20w moving average.
It will continue its fall down to previous low, around 2000, in the next few months.


Keep your short...








Nikkei Monthly: reversed...

Index did not resist to the global reversal
same conclusion, Sell
















Volatility Index weekly chart:

The VIX index, measures volatility of options traded in the US, it is high when markets are falling , and low when market are in uptrend. Simply put, the more market are falling, the more nervous are the market players.. The arrow I draw shows positive divergence, a very reliable reversal signal... Here the VIX index is moving down, while the momentum index is going up. This signals a reversal to come... Volatility is about to reverse and increase...ie market is about to continue to fall....


Conclusion: SELL EQUITY MARKET, DON'T OWN  SHARES, the only index that looks bullish is the Nasdaq... I am happy to miss this rally . 
Even Sell short if you can...
Happy investing....