What Does High Risk Tell Us?

A high-risk indicator tells us the stock market is at its highest risk level. It means instead of being in the wealth-growing mode, the market is entering the wealth-conservation mode.

This is the time you need to conserve capital because it is very easy to lose at this point. It doesn't tell us how deep or how long a correction in the market will be. Nobody can predict that. The charts and supply-and-demand lines will tell you when the high-risk level is over, but it cannot do that ahead of time.

So, if we cannot predict how long or how deep a high-risk market level correction will be, what do we need to do? Stay tuned...