MDM - Cash vs Neutral

Published : April 4 2012 at 13:37 ET

When MDM goes to neutral, that is equivalent to going to cash. Any ETFs owned should be sold, though some members may use different selling strategies to pyramid out of positions.

Any stocks owned could either be sold, or, as we sometimes do, sold when they hit their sell stops since a few leading stocks can buck neutral and even bearish market environments.

The 7-week rule discussed here:

enables one to use the 10-day moving average and 50-day moving average to keep oneself in position regardless of the MDM.

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