[theory6453]

The average for the nine sectors is 47.56%, and so the internals are showing that the US market is a Stage 3 phase overall, but as you can see, some sectors are in worse shape and are moving into Stage 4. Whether the rest of the sectors follow them down is unknown, but the method doesn't recommend buying during Stage 3, and so it's a time to be more defensive, or consider shorting in the weakest areas of the market imo.

Thanks for posting this. I've been meaning to pay closer attention to this part of the site so I glad I finally got around to looking at this.

Two questions of advice:

1) Since the data shows the US in a Stage 3 and we should be acting "more defensively"... I have three major positions (holdovers from IBD) that have under-performed (one's down 4% and the other's down 9%). My conundrum is that both have broken trend but neither have violated the 30 wma (although my gut tells me that it will happen soon enough with the way the market is going). In your opinion, would you hold and wait and see what happens or cut ties, take a loss, and move forward?

2) As to the post above re: the Stage 3 & deteriorating US sectors, I cross-referenced your post of shorts from the weekend with the sectors and the best short candidates (CIR & PNR) are in the same Sector/SubGroup- Industrials/Industrial Machinery... Would it be ill-advised to short two positions in the same subgroup? ADNC also looks like a good candidate and is in Technology sector, but I'm not sure my broker will let me short a position under $10, so that one might be out.

Thanks for your feedback.