Unusual Trading Signals Can Prepare You for the Next Sell-Off

Unusual trading signals in individual stocks have historically been able to forecast a market about to fall. These warnings also provide a heads-up for opportunistic entry points. On Oct. 12, we published an article saying we expected the markets should fall an average of 5.29% and that it should take an average of 13 trading days to happen. This is very valuable for those on the sidelines waiting for a pullback in this multi-year bull market. I wrote about a threshold that had been triggered that historically precedes a big fall in the market. This provides an opportunity for patient investors because they can pick up stocks at a bargain. Because the signals are so rare, we pay close attention when they happen. So, why this update? It's because having a playbook for the next sell-off can help those looking for an investing opportunity. Being able to view the market in an unemotional way can lead to smart decisions when they present themselves. The following is a quick summary followed by a few stats compared with our expectations:On Oct. 10, 2018, we sent a report that our buying/selling ratio was preparing us for an average market drop of 5.29% and an average of 13 trading days to get there.