Can Monthly Crossovers Help Predict Turning Points?

You knew it would take some major market mayhem to bring the Yinzer Analyzer out from hiding but with the markets on the cusp and with investors running for the exits, he’s starting to wonder if now is finally the time to be looking to switch to a defensive playbook. We’ve talked a lot in the past about how this market’s major turning points have revolved around the Fed and its various QE programs and while taking down the beta before the next FOMC meeting seems like a good idea, the Yinzer Analyst is all about timing. Having been too early to call the end of the bull market before, I can tell you that having the right call and being early is the exact same thing as being wrong. So to make sure that this time, it really is different, I’m dusting off one of my favorite technical trading rules, the 2/10 monthly crossover rule (simplifying it as 2/10) to see whether or not the long promised pullback is finally upon us!  And with it shooting off signals like fireworks at a redneck Easter, the time to turtle up might be nigh. Continue reading