Trend model signals

[Mandeep]

Hi Cam.
Thanks for your website.
I was wondering why you decided to stay long (spxl and tna) when the trend model turned bearish? Is the market now getting oversold enough to add to the long positions?

[Cam Hui]

When the market sold off, readings got oversold. Given that I was already long, I decided to stay long as I believed the risk-reward ratio was in my favor. Unfortunately, oversold markets got more oversold.

Obviously, I would not act contrary to the Trend Model signal if I was starting with cash.

[Author]

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