We performed a historical analysis of BPNYA index with NYSE index (from 1990-2000 & 2000-2010) and came up with certain guidelines to help us GET IN and GET OUT of the markets. You can read all this in detail here. Hence we refer to BPNYA index as our history teacher.
What is our history teacher telling us this week?
From below BPNYA chart, we can see that BPNYA index crossed EMA(30) downwards which can be considered as our early SELL signal (being defensive and protect your capital). Typically we usually take late SELL signal triggered when EMA(30) (after crossing BPNYA index downwards) crossing MA(50) downwards, but since global markets are in turmoil we may want to consider taking early SELL signal this time.
401K/HSA/College Fund: We may consider moving to money market fund as market outlook does not look impressive from here on.
Traditional IRA/Roth IRA: We may consider moving into cash or invest in Bond/Inverse funds which might prove to be better option for now. Based on our "Advanced Strategies" section we can invest in ETFs using our BEAR market ETF list.