The crash indicator came out after I bought the system. I look at it on the web page, but don't use it exclusively. As far as timing the market, noone can really. But, when the market does correct or even enter a bear phase, there are stocks which go up. Thus, you want to be in the strongest stocks and that strength is shown in the investors daily using relative strengths. Also during these times, you want the most powerful earnings improvements and investors daily also shows that.
As far as my "market timing", I follow the advances and declines and new highs and lows. Numbers which I put on paper and check as to see how the market internals look. Then, when my loss cutting strategy forces me out of a stock, I will sell immmediately and maybe even sell short or look for short sells.
Believe it or not, at any one time (including now) I am both long and short individual stocks. I will look at the averages, but I really don't use them for much. Stocks move down in an up market as well as up in a down market. The individual issue is what I look at and also at other stocks in the same industry. Birds of a flock do fly together, and this holds true in the stock market also.
I have a degree in mathematics which helps me and several years of market experience. I also read lots of books both on fundamentals and charting and watch and study the market alot. The quote from james O'shaunessey rings true for the most part " what is strong usually gets stronger and what is weak usually gets weaker" reguardless of the fundamentals.
My biggest disadvantage: i am currently in the navy stationed on a ballistic missile submarine out of king's bay georgia. I have to leave for months at a time and thus can't follow the market while I am gone. This fact has hurt me many times, but I am trying to teach my wife some things as to minimize the effects. Sometimes when the trend changes and the stock breaks that support, by the time I get back it is too late. (ie ticker mscc which I took a loss on. Fundamentals still look great, but when it broke the trendline at 18 while I was gone it just collapsed and kept going down.)
Anyway, I hope this helps and good luck. I am sorry about the long post. I notice you are on some other threads I read (I don't post very often) and will keep in touch if you like. |
