Alert: Two More TradeSmith Bearseye Signals Have Triggered

[TradeSmith] Alert: Two More TradeSmith Bearseye Signals Have Triggered My team and I promised to alert all TradeSmith readers if a Bearseye signal — our proprietary indicator of an impending bear market — appeared in any of the major market indexes we follow. As a reminder, this signal tells us there is an elevated risk of a further severe decline or a crash in the index in which it appears. We wrote to you just a few days ago when a bear market signal triggered for the S&P 500 and the Russell 1000. Yesterday, May 11, a Bearseye signal appeared in the S&P 400 (MID) and the S&P 600 (SML) indexes. Usually, we recommend letting trailing stops dictate your exit points. But as more signals are triggered, it seems more clear that a bear market is coming, so we prefer to take extra precautions. If you currently own any stocks in these indexes, the most conservative course of action is to exit those positions immediately, regardless of their Health status. And, at a minimum, our research shows it is always prudent to consider selling any Red Zone stocks you may still be holding. One note: It can be common to see a bounce following a steep decline – especially in an oversold condition like the one we’re in now. So if you decide to reduce your risk by raising cash, we recommend you sell into any strength in the weeks ahead. We’ll be back to let you know if the Bearseye appears in any other indexes in the days or weeks ahead. Stay safe, [Keith Kaplan]Keith [866.385.2076](tel:+866-385-2076) | support@tradesmith.com ©2022 TradeSmith, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of TradeSmith, LLC. This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as researchers and writers. Our work may contain errors and should not be considered personalized investment advice. TradeSmith, LLC does not issue securities recommendations, and no discussion of a particular stock(s) should be interpreted as such. Past, simulated, and/or hypothetical performance of any strategy published by TradeSmith, LLC should not be interpreted as representational of future returns. You shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. TradeSmith P.O. Box 3039 Spring Hill, FL 34611 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo]