The fact that all 7 short-term trading models have now been stopped out suggests either we are in the middle of a transition from Long to Short, or last week's declines were a fake out. All pattern recognition models are pointing to the former, so standing aside waiting for fresh Sell Signals is a much better position than watching Long profits vanish hour by hour. Once this hiccup up is over, we will start getting fully invested again. In the event the market goes straight up from here, we will soon get a VXX Sell Signal (@ 11.41) and possibly some re-entry Longs.
