Then, we simply switch to trade in the same direction of that trend (or remain heavily in
cash in downtrends).
Not exact matches
FXE (CurrencyShares Euro Trust) remains
in a strong
downtrend / sell signal but this portfolio is not shorting stocks so it remains
in cash on the FXE position.
Looking back
in history, the markets have had much more growth periods than
downtrends (about 7 to 1) so investing today is statistically better than holding on to your
cash.
Following them may have your portfolio
in cash when the market is thriving, and other times may be late signaling a
downtrend.
Bitcoin, Bitcoin
Cash, and Ethereum are firmly stuck
in downtrends.
Cabot's growth disciplines advise moving toward heavier investment when markets are
in uptrends and toward heavier
cash positions when markets are
in downtrends.
The goal was to reduce risk by staying
in cash when the overall market is
in a
downtrend.
Bitcoin
Cash is
in a strong
downtrend since topping out at $ 972 on Aug. 19.
We were correct
in predicting a fall to $ 400 levels on Bitcoin
Cash if it failed to breakout of the
downtrend line.