Q......
At 08:44 AM 5/12/98 +0200, Gary wrote:
dear tom
hi, i'm a new vistor on your page .
i am sold on aim (i will be soon buying the newport program )
please excuse my ignorance , but how do i get the idiot wave in south
africa ? is it on the program ?
thanks for your imput
regards, gary
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A.....
Hi Gary,
Welcome to the AIM pages. Actually, there's information on the Idiot Wave in several locations at the AIM Web site. First, there's the weekly newsletter that takes the market pulse and gives the Idiot Wave reading for the latest period. The AIM Dictionary will give you the basics. In the AIM FAQ pages, there's some more information and then on the Idiot Wave History page you'll find the main graph (not always up to date) and more description. Linked from that page are the Idiot Wave components. Each of the four pieces are given a detailed description there. All pages are accessable from:
execpc.com
The IW doesn't move very quickly in either direction. It follows the trend of the market by combining moving averages of several bits of data. Unfortunately for you, it reflects the U.S. market's data only. It does seem that the world markets are more closely linked these days, so maybe it does some good for the non-U.S. markets as well. There's enough description at the web site that you should be able to get some ideas about construction of a similar barometer for your local stock exchange.
Since I use the IW as the "target" for my AIM cash reserves, it's good to check it when your cash reserves are nearly fully funded. If you feel uncertain as to whether my IW is appropriate for your local markets, then use 50% cash reserve for your more "exciting" stocks, 33% cash for stocks like large industrial cyclicals and diversified mutual funds and maybe 20% for large utility stocks. These values can be used both as your starting cash reserves and also as your upper limit on cash in a good market. When you reach that level, that's when you start using "vealies" to contain the cash reserve levels.
Please let me know if this helps. I'm sure Bob Norman will be pleased to have yet another country represented in his Users List! I'll be happy to help out as you get started with your AIM/Newport accounts. Newport's settings are AIM "by the book" for their default positions. Cash reserve is 1/3 of total value unless you change it. It's denominated in U.S. Dollars as is the stock or fund price. I don't think this should be a problem, however. Just put everything in as your local currency and all should be well.
Best regards,
Tom Veale |
