[ Indicators and Markets ]
Dave,
I'm kind of giddy about this new momentum-based indicator I just built. I'm cautiously optimistic about it, but I still need to back-test it for verification.
With it, it was able to take me out of the markets before any significant corrections occurred, including 1987, and it pulled me out right before October of last year's. Entries were made when markets were still cautious, and let me participate in some fairly rewarding moves. Applied to the Japanese markets, it allowed me to sidestep the Bubble Burst and the following bear market before it even started (out the second week of January 1990).
As an example, it gave a sell signal for the S&P 500 at the close of 4/23 at 1119, and has not yet re-entered the market. Given the results so far, I would be apt to minimize long positions under the current state of the markets. That recent Gravestone Doji doesn't help either.
So far, it sounds like a magic bullet, so that's why it's kind of exciting and hard to believe at the same time. Let's see how it goes from here...
Regards,
Rainier |
