Bullish percent tracking guides equity exposure
The advisors presented a framework using Point & Figure charting and 'bullish percent' metrics to identify market extremes and systematically adjust equity exposure.
The argument
Mike Preston explained that tracking the percentage of index components on buy signals helps identify when the market is washed out (e.g., S&P 500 bullish percent hitting 32% before reversing), signaling a safer window to remove hedges and add exposure.
The thesis, stress-tested
✓ What validates it
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▸ Risks discussed
- ▸Indicators are not perfect timing tools and can give false reversal signals
- ▸Sudden macro shocks can cause rapid market reversals before indicators adjust
Hear it yourself
"I wanted to kinda dive a little bit and and dissect the technology move because it's been pretty eye popping. So here is a chart that, on the left hand side, this goes back to the end of September of last year up through today or yesterday, I guess. And we have three three tickers here. These are broad ETFs. None of these are recommendations. This is just a an illustrative thing. So we have the XLK, which is the sector spider total tech you know, technology sector. And then we have subsectors. We got software and semiconductors. So you can see the you know, obviously, you can see that, you know, for much of the last"
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