Not a Jake Bernstein Groupie...
Although I subscribe to Jake Bernstein's daily advisory service, I do it strictly to get the Daily Sentiment Index readings on the S&P and the Nasdaq. I've never tried any of his recommended trades or traded commodities, so I don't know if his system works.
What I do know, based on computer back-testing done while I worked at Flexible Plan Investments, is that the S&P DSI is a good contrarian indicator for the stock Market. Further, the Nasdaq DSI, published since 2/28/00, shows almost identical patterns vis a vis the Nasdaq. Both indicators give fairly frequent oversold/overbought signals, so there's no inherent contradiction, when indicators with a more intermediate orientation, such as Consensus Inc, do not move in sync.
I have the historical DSI data in Excel, with graphs, so you're welcome to examine it yourself if you want. |
