My long-term timing system keeps generating sell signals with 3 markets generating signals this week. If next week continues the downward trend or the next few weeks maintain a sideways direction, many other markets will also signal sells including the DIA, SPY, IYR, etc.
As a reminder, this is a long-term timing systems to be used in combination with asset-allocation methodologies. When a buy signal is generated for a given market, it indicates that the proper portfolio allocation should be invested according the asset allocation guidelines based on the risk/return profile of your portfolio. These sell signals come infrequently (every year or so at most) and help protect against failures in the efficient market hypothesis (the fact that negative semi-covariance tends to be stronger than co-variance among markets).
Last week the markets that generated sell signals included Emerging Markets (EEM), Silver (SLV) and the Global High Cap 100, (IOO).
Here is a chart of the EEM.
