Sure, no problem telling you what's in the model. It is made up of a combination of fundamental/economic indicators and technical indicators. The fundamental/economic part of the model uses such parameters as money supply growth, fed funds rate, inflation, AAA bond yield, unemployment claims, and market PE ratios. The technical analyis part of the model utilizes various moving averages and their slopes, MACD's, relative strength, Stochastic RSI, NYSE bullish %, OEX trends and deviation from trend measurement.
Right now the fundamental/economic part of the model is telling me that we are in a bull phase as most of the indicators are very bullish with the exception of PE ratio. However, the technical indicators are better for short term (1-2 months)market moves and they aren't bullish quite yet.
I will tell you though, this model will not be correct all the time.......perhaps 65% of the time with the winning trades being larger percentage gains on average than the losing trades. At least that's the plan. Time will tell.
Tom |
