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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (24696)5/14/2000 8:19:00 AM
From: Larry Grzemkowski  Read Replies (2) of 54805
 
RE: MARKET TIMING

Mike, you really sparked my interest with this one. If I were to time the market I would use the 175 day simple moving average of the McClellan Summation Index. Now it really does not make any difference what you would use the point is does timing improve your returns and prevent you from those drastic losses you suffer during long term buy and hold periods.

Seeing that I also own the four stocks you mention CSCO, CTXS, GMST and SEBL I did a little study. I went back 3 years to the first buy in the timing model which was 5/4/97. So every other period is buy sell buy sell ect.

What the data shows is that long term buy and hold is the best method and you just can not time the market. I bet your surprised :o).

So for the period of 5/4/97 to 5/12/2000:

---------------------------%GAIN
STOCK-----------LTB&H---------------------TIMING MODEL

CSCO--------------816--------------------------400

CTXS--------------1499-------------------------1552

GMST--------------1257-------------------------440

SEBL--------------2357-------------------------1246

CTXS got lucky in the timing and gained 127% from 11/9/99 to 3/21/00.

The study made me feel better about the subject and I hope it helps others.

The data is below if it copies ok.

Larry G



CSCO
LTB&H TIMED
PRICE %GAIN $$$
5/4/97 6.542
10/28/97 8.94 36.66 8.94
2/10/98 10.812
5/12/98 12.667 17.16 10.47
10/27/98 15.719
2/19/99 25.516 62.33 17.00
4/23/99 29.406
8/5/99 31.125 5.85 18.00
11/9/99 39.75
3/21/00 72.188 81.61 32.68
5/12/00 59.94
%GAIN 816 400

CTXS
LTB&H TIMED
PRICE %GAIN $$$
5/4/97 3.292
10/28/97 12.198 270.53 12.20
2/10/98 11.958
5/12/98 14.516 21.39 14.81
10/27/98 17.016
2/19/99 24.406 43.43 21.24
4/23/99 20.719
8/5/99 23.281 12.37 23.86
11/9/99 40.531
3/21/00 92.375 127.91 54.39
5/12/00 52.63
%GAIN 1499 1552

GMST
LTB&H TIMED
PRICE %GAIN $$$
5/4/97 3.312
10/28/97 5.406 63.22 5.41
2/10/98 7.906
5/12/98 11.141 40.92 7.62
10/27/98 13.719
2/19/99 15.25 11.16 8.47
4/23/99 28.625
8/5/99 28.906 0.98 8.55
11/9/99 44.562
3/21/00 93.188 109.12 17.88
5/12/00 44.94
%GAIN 1257 440

SEBL
LTB&H TIMED
PRICE %GAIN $$$
5/4/97 5.25
10/28/97 9.969 89.89 9.97
2/10/98 11.688
5/12/98 13.375 14.43 11.41
10/27/98 9.812
2/19/99 21.594 120.08 25.11
4/23/99 21
8/5/99 26.688 27.09 31.91
11/9/99 63.125
3/21/00 139.812 121.48 70.67
5/12/00 129
%GAIN 2357 1246
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