The NIRP Crash Indicator has undergone a makeover and a name change to “Bull & Bear Tracker”. There is no longer a yellow signal. The old YELLOW was switched to the color GREEN and the old green which had never been used has been eliminated.
The proprietary indicator is being rushed back into service due to market volatility increasing substantially in 2018 as compared to 2017. The chart below depicts that for the first year of Mr. Trump’s Presidency the market had the lowest volatility for any year over the past 68 years.
The NIRP Crash Indicator’s was developed by myself in 2016 to monitor for potential crashes. The impetus for its development had been my concerns about the Bank of Japan’s (BoJ) instituting of a negative interest rate policy (NIRP) and the spreading of negative interest rates putting the global markets and banking systems on the verge of a crash. See “Here’s How Japan’s NIRP Increases the Probability of Global Market Crash” and “New Indicator to Predict Future Market Crashes”.
The signals were effective throughout 2016. From March 1, 2016, through December 31, 2016, the ORANGE signals predicted heightened volatility and the RED signal predicted the BREXIT crash. See equities.com article “NIRP Crash Indicator Signals Very Reliable for 2016” and chart below.
In my reviewing of the NIRP Crash Indicator’s 2016 signals it dawned on me that the YELLOW or LONG signals could have been utilized by my readers at equities.com and also Seeking Alpha to trade leveraged ETFs such as the SPXL. I had never before given that consideration since I had been intently focused to develop the indicator to monitor for crashes. It had never occurred to me to see how an investor who utilized its yellow non-crash signal to purchase a triple leveraged S&P 500 ETF such as the SPXL would have performed.
For those investors who do not want to take minimal risk and yet have the potential for their portfolios to grow I am recommending the deployment of a 90/10 Crash Protection Strategy. For information on the strategy which is the only fail-safe strategy that one can utilize to protect their liquid assets from crashes, recessions and depressions view video below entitled “Crash! & 90/10 Crash Protection Strategy”.