I sold stocks in the 401k to take me back to a 30% invested position. This is defensive. The NTSM system flashed a Sell (based on mid-day numbers) but only using an experimental indicator (Variance of price-volume action) that was triggered yesterday. I need to backtest the Variance indicator over the past 5-years to get a better handle on the indicator.
It is also possible that the day will end with better numbers and we would not have a Sell in the NTSM at the end of the day.
So...my reasoning is as much based on risk as anything else. There is High risk now. I am an old guy and I can't accept losing too much. So if I am wrong, and I lose a little to the S&P (like the last NTSM Sell signal when we lost 2% to the S&P vs Buy and hold) I will accept that. I prefer that scenario (making a little less and sleeping better) than the possibility of losing a lot.
