The trend of the overall market would be defined by drawing a simple trend line connecting the bottoms of the bars on the chart of the market index. Your money at this point would stay invested in the original stocks purchased until you saw a change in the current market trend or a specific stock in your portfolio violated its trend. Once the overall market violated its trend line, we would then begin liquidating all positions in our portfolio, starting with the weakest stocks first. As a true direction change became more apparent, you would then want to take this part of your portfolio completely back to cash and shift a larger portion of your funds into the intermediate-term strategy. On the chart shown below you will notice that the NASDAQ back in January 2000 broke through our trend line but then recovered and resumed its trend going into the month of February. If at this point you had sold a part of your holdings you would simply buy them back as the trend resumed. Too often individuals are resistant to spending a measly $20 in commissions to enter or exit a trade, oftentimes causing themselves tremendous losses. They won’t spend the $20 to get out of a bad trade, but yet they are willing to sit in a stock and lose thousands of dollars as it completely breaks down. Generally the first time you hear yourself say, "I should get out," you're probably correct.