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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Tom Pulley who wrote (82648)	2/22/2002 7:39:41 AM
From: Robert Scott	Respond to of 99985

It sounds similar to your long term model. It looks at economic data such as interest rates, money supply, inflation, production, confidence and sentiment and based on the last 31 years picks points when the economic backdrop is favorable for growth and when it isn't. Based on that, we go long the index stocks or, if a defensive posture is indicated, long the defensive sectors. It's up to the investor depending on their risk tolerance whether to invest in the QQQ, SPY, DIA or other sector or individual stocks during IN periods - the model invests in the QQQ during IN periods. For OUT periods, cash, utilities, bonds, drug or bank stocks or other defensive sectors or stocks can be used. The model invests in the PPH during OUT periods. The model is always 100% invested. We use month end prices and publish our signals at month end. We got OUT at the end of February 2000 and got IN at the end of August 2001. We've had 9 IN signals since 1971 so it's definitely a medium to long term model. Things look a little shaky now but like I tell my subscribers - it never looks good near the bottom and it never looks bad at the top. Here's the web site in case you're interested: maximuminvesting.com