Using the Model
The Timing Pundit Ultimate signal is meant to be used with market index funds, not individual stocks. The overall market has a significant influence on individual stocks; however, an individual stock can diverge significantly from the market at any given time. All the American indices are fairly well correlated and so are international indices to a lesser degree. You can use the Ultimate signal to trade in any of them or a combination.
The recommended strategy is to trade QQQ or leveraged TQQQ. If you want to short the market during sell signals instead of going to cash, the recommendation is PSQ, inverse to QQQ. See the Annual Table in the Performance tab.
ETF stands for Exchange Traded Fund and can be traded anytime just like a regular stock. Trade signals will be issued after market close. The trade is then placed for the market open the next trading day.
Should I go to cash or a short position during a sell signal?
Taking a short position during Sell signals can lead to larger gains long term but with increased risk. 71% of Buy signals are profitable but only 56% of Sell signals are. Sell signals are more about avoiding risk than making a profit. Nevertheless, I have included Long only and Long/Short strategies in the next section.