stock Market Crash
DOW 11069.69 -118.54 NASDAQ 2225.12 -33.92 SP500 1220.82 -16.01

Stock Market Crash Index Status: Invested

Click Above For The Full Daily Crash Report

The Stock Market Crash Index was developed by Henry Ford and is provided to us courtesy of the Pitbull Investor Stock trading system. This indicator usually signals a -10 about 2 weeks before a stock market crash, and has NEVER FAILED to signal before a major U.S. Stock Market Crash!

    Significant Readings to look for on the Stock Market Crash Index:

    -6

     Short Term Sell Signal - Exit or lighten long positions in that sector and move to cash.

    -10

     Crash Alert - Exit long positions in sector, move to cash, increase short selling in sector.

    +6

     All Clear/Buy - After a -6 or -10 crash signal we will wait for a +6 to start buying long again.

How Long After A -10 Do You Wait If There isn't a Stock Market Crash?

We will stick to our position until we see a +6.

The reading is a -8 today, do I exit my long positions?

No.!! We do not act on this index unless it signals a Sell.. When we get a reading of -6 we will be on alert, liquidating positions and keeping a close eye on the index. Waiting to see if it progresses to a crash signal. The crash index will often bounce between -6 and +10 in normal market swings, but when it reaches to the -6 or -10 point it is better to be safe than sorry.

The Market Crash Index is at a +2, why is the stock market down today?

This is not a market timing tool designed to tell you if the market will close lower or higher today. It is designed simply to warn us before a major stock market crash with ample time to safely exit our long positions. This index is used as a leading indicator to warn of the possibility of a large negative drop in the market, (20% or more), as indicated by a failure in underlying market fundamentals.

 The Market Crash Index Just Dropped from a +2 to a -4 what do I do?

Nothing!! ONCE AGAIN! We do not act on the Stock Market Crash index at all unless it reaches a -10..Once it reaches a -10 we will remain in cash until the index returns to a +6, at which time we start buying in on long positions again. Any reading other than a -10 (or a +6 following a -10) is insignificant.

Investor Guidelines for a -10 Stock Market Crash Alert Reading:

  • Exit or convert all margin positions to non-margin until the PCI signals all clear.
  • Exit all riskier 4 letter stocks( 4 letter meaning Nasdaq or OTC issues)

  • Increase short positions on selected stocks, (see Pitbull Shorting Selections)

This indicator has never failed to get us out in time for a major stock market crash, usually providing at least two weeks advance notice.

The Crash Index Is Updated Daily at the Stock Market Crash Index Report Page

 

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