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Strategies & Market Trends : Buying SPLITs and other Strategies -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (1139)	7/22/2010 8:07:18 AM
From: Terry Whitman	Read Replies (1) \| Respond to of 1163

It's always darkest just before dawn.. is the old English saying, I believe. -g- I have two long-term signal systems that I've studied recently that are mixed. To summarize them: They are both based on price ratios and their moving averages, the first is $BDI/SPY. Where BDI is the Baltic Dry Index. It is on a sell signal at present, but is way oversold. It would take a nice rally in the BDI to move to a buy. The second is the EEM/SPY, and it is on a Buy. Backtested both over the last 4 years, with the following results: BDI/SPY: 3 Buys, 3 Sells, 5 trades. Positive 3/5 times, 60%. Net Return= +90%, APR= +18%. EEM/SPY: 4 Buys, 3 Sells, 6 trades. Correct 2/6 times, 33%. Net Return = +32%, APR = +7.2% While they both beat the pants off Buy and Hold the market(-15%, -3.5%APR), the BDI/SPY is obviously more reliable, and rewarding.. and I'm still waiting on that Buy signal.