Crossovers

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Let’s look at a few major indexes and their exponential moving averages. The Dow Jones Composite is threatening (for the bears, at least) to save itself. You can practically hear the brakes squeal as the 50-day avoids cross below the 100-day.

The NASDAQ, however, isn’t quite so lucky, thanks to such disasters as AMZN and AAPL.

Naturally, the NASDAQ 100 is in similar shape.

The worst-damaged of all is the small caps, the Russell 2000.

And, as experience has shown (this is late 2015 and early 2016), this kind of downtrend can persist. Let’s hope so, at least! I’ve amplified my risk to 200% across 60 positions.