[isatrader]

With the bullish percent index flashing a warning are you taking a more cautious approach? Am I on track with that Bullish %? I got that far in Dorsey's book so I think it warrants caution with buys.

Dorsey describes the Bullish Percent Index as the head coach and compares it to American football. Below is a quote from one of their articles on their site:

"There is a time to have the offensive team on the field, and a time to have the defensive team on the field. The problem that most investors have is they don’t know what team should be on the field. When the offensive team is on the field, we focus on wealth accumulation strategies. When the defensive team is on the field, the focus is on wealth preservation."

So with the Bullish Percent Index currently on a sell signal in a column of Os and around the key 70% level the playbook recommends that the defensive team should be on the field and hence the focus should be on wealth preservation strategies. Here's the bullet point list from their Bullish Percent Playbook that suggests strategies for what do in it's current state:

• Aggressive Defense
  
• Decrease volatility
  
• Raise cash levels
  
• Reduce exposure to offensive sectors
  
• Tighter stops on longs
  
• Sell leaders & laggards on breakdowns
  
• Buy protective puts to hedge
  
• Buy inverse funds to hedge
  
• Initiate Short Equity exposure
  
• Increase non-correlated exposure
  

So you are on the right track with what it recommends if you are at least starting to think about wealth preservation strategies.