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Strategies & Market Trends : TIMING INDEX MUTUAL FUNDS -- Ignore unavailable to you. Want to Upgrade?


To: donald sew who wrote (33)2/6/2000 9:15:00 AM
From: jjs_ynot  Read Replies (1) | Respond to of 428
 
Don,

Any comments. Should I increase the downside exposure or leave it at 40%, or even hedge it???

In terms of the amount of downside exposure; I think that it should correspond to the risk level that your system is indicating. For example; you have said that there is a 3-day pattern after getting a class 1 sell or buy signal. It would seem that you should have maximum exposure in the direction of the signal during those 3 days and then start to hedge as seems appropriate, perhaps averaging in with 50% the day of the signal and 50% the next day.

For the most recent sell signal; what is day one - Friday or Monday?

Regards,

Dave



To: donald sew who wrote (33)2/6/2000 11:39:00 AM
From: edward miller  Read Replies (2) | Respond to of 428
 
Donald,

Here is an obvious question. With the S&P rolling over
more obviously than the NAS, why are you in USPIX and not
more into URPIX? The NAS is going it's own way (UP !!)
while the Dow and S&P are having their troubles.

Which index will lead to the downside on a break? I think
the answer is the S&P.

Keep in mind that I am mostly a lurker and don't have the
time to trade every day. I am often wrong, but this seems
obvious to me:

short the weak sister and don't short early.

Ed Miller



To: donald sew who wrote (33)2/6/2000 9:24:00 PM
From: Terry Whitman  Read Replies (1) | Respond to of 428
 
Follow your signals- I say. If they say sell, then be net short. (more than 50%) If your signals are saying a longer term downtrend is in place, maybe go as high as 75-80% net.

I don't know about the balance between USPIX and URPIX. Probably the larger amount should be in the weaker index. (SPX) Make sense to you?

My available $ will be in gold stocks this week. <g>