Avoid the current plunge

 

 

How to detect market plunges without charts (similar to Death Cross)

1.       Bring up Finviz.com.

2.       Enter SPY (or any ETF that simulates the market) or RSP, equally-weighted SPY.

3.       If SMA-200% is positive, it indicates that the market plunge has not been detected and you can skip the following steps.

4.       The market is plunging if SMA-50% is more negative than SMA-200%. To illustrate this condition, SMA-200% is -2% and SMA-50% is -5%.

5.       Another hint: B/S (buy sell ratio) is negative, specially it is more negative than last week.

6.       Conservative investors should sell most stocks starting with the riskiest ones first such as the ones with negative earnings, high P/Es and/or high Debt/Equity. Obtain this info from Finviz.com by entering the symbol of the stock you own.

7.       Aggressive investors should sell all stocks. Extremely aggressive investors should sell all stocks, buy contra ETFs such as PSQ, and even short stocks. I do not recommend beginners to be aggressive.

Simple chart example. Bring up StockCharts.com and enter SPY. It indicates Death Cross occurred on about March, 14, 2022.