Author: Duane Runnels Date: To: Canslim Subject: [CANSLIM] M in Correction vs. Exit strategy
There is nothing that I'm aware of in canslim that says, "When M is in Correction, sell all your holdings." I have exit strategies that generally take me out during M in Correction. And sometimes when I gauge that we're ready for a fall, I get out on the last distribution day of the rally, sometimes anticipating it by bailing early in the am. For the last several corrections I've noticed that once I've been stopped out on a couple of my holdings, it's almost always correct to just sell the others too. Then if they still meet my criteria later, I buy them back, sometimes before M in Confirmed Rally.
It is my belief about the market that there is a time to be all time, partly in, and a time to be out depending upon what size returns I can expect, i.e. there are low risk periods and high risk periods. I prefer to be out completely out (or short) during the periods when returns will be difficult.
