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Tech Check: What are the charts showing us?

As many of you know we use a bullish/bearish technical indicator when managing portfolios. If you are unaware of the system you can refer to our “Our Rule #1 – Risk Management” article. Bottom line, for people that are close to, or maybe already in retirement, the last thing they can suffer is a major draw down in their portfolio a la 2008. That is why we use the indicator. When it tells us we’re bearish we simply raise more cash to preserve capital in client portfolios. Now don’t get me wrong, I’m not saying another 2008 is around the corner . . . this system just allows us to keep individuals who have the goal of capital preservation safe and happy. Here’s how it works . . . When the blue line (10 period exponential moving average) is above the red line (simple moving average) then we are bullish. When the
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Categories: Markets and Strategy.
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