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Two of my sell indicators were triggered on Friday. Combined with other factors it has been obvious to me since January there would be a correction. The hard part is getting the timing right. I have been 50% in cash for 6 months. The stocks I own are fairly low volatility, but they have fallen a bit.
VIX has nearly quadrupled to 37 since its recent lows of around 9.
There have been 4 prime rate hikes since December of 2016. The most recent hike was in January 2018. Those hikes were all ¼ point, but combined they equal a 1% hike since the low of 3.25% in January 2009.
When interest rates go up, stocks tend to go down.
Portfolio insurance is probably involved, too. If a little player like me got a sell signal then there were probably a lot of other big time money managers who got sell signals on Friday, too.
I think we all knew a correction in the stock market (as well as cryptos) was coming. It was just a matter of when, how big, and how long.
Last edited by highnote; 02-06-2018 at 03:49 AM.
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