Wednesday, April 11, 2012

Tactical Diversity Speedometer - Speed on 4/11/12

The speed has dropped back fast and is now 77%.  Sometimes it's not just the absolute level of the speed but also how fast it is dropping that waves a caution flag.  And now is one of those times!

In general when the speed is more than 40% to 60% or more there are plenty of buyable sectors (and consequently ETFs and funds). But when the speed is low and especially when it is close to zero; it is time to watch out and to be financially ultra-conservative. 

The Tactical Diversity Speedometer provides a quick and powerful way to see the current risk in the markets. The Speedometer shows the percentage of Sectors currently passing our buying considerations and thus is a direct measure of the health and robustness of the market.  

We monitor the speed of the Tactical Diversity Speedometer daily and if we see it picking up or dropping off sharply we will post a new update to this blog.  

Please note that the Tactical Diversity Speedometer is a proprietary development of 401k Maximizer and is provided to our subscribers and the readers of this blog free of charge for your financial information and advantage.