I got lots of emails from readers who are down 20% plus in last few weeks. While I might sympathize with your pain, I have no empathy. When there is a change in market characteristics, if you are slow to react to it or if you failed to anticipate it, you get whacked pretty hard.Since the beginning of this correction, there has been chorus of amateur bulls exhorting dip buying. Action like what you witnessed yesterday is good to separate the men from the boys.
Total 4% plus bullish breakouts=72
Total 4% plus bearish breakouts=816
65 day bullish/bearish ratio= 400/954
Stocks up 50% or more in a month=5
Stocks up 25% or more in a month=31
If you are down 20% plus in this correction, you need to seriously examine your methodology. There was ample time to get out early in this down move. There was no need to buy dips when the market character changed. One of the greatest strength for small and mid size speculators is flexibility, you don't have to turn big tankers like big speculators have to, plus you don't need to adopt their methods of dip buying when market is in confirmed downtrend.
The entire logic behind Market Monitor is to anticipate and avoid such periods and lower the drawdowns. For 350 days in a year, it seems like unnecessary chore to track it, but it pays you off in the 15 days, when it matters.