Yesterday, I talked about the flattening of the trend line and its potential effect on a buy signal. Today, let’s look at a historical chart of the domestic Trend Tracking Index (TTI) to determine if a rising trend line should you keep you in the market, even though our trading rules signal a ‘Sell.’ Take a look a the graph …
The Flattening Trend Line—Part I
One reader pointed to a CNBC video featuring a short presentation about a “flattening trend line.” Take a look but disregard the useless chatter afterwards: While I don’t use the 150-day moving average as shown in this demonstration, this nevertheless poses an interesting question. Does entering the market (using our entry rules), after the trend line of the Trend Tracking …
In This Rally We Trust
The recent market rebound has shown a lot of legs ever since the S&P; 500 made a 12-year low on March 9th. This prompted many readers to ask whether this is still a bear market bounce or possibly the beginning of a new bull market. Reader Mel had this comment: As I’ve said before, I appreciate very much your sharing …
No Load Fund/ETF Tracker updated through 4/2/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpDespite a sharp sell off on Monday, the major averages recovered and closed higher for the 4th week in a row. Our Trend Tracking Index (TTI) for domestic funds/ETFs remains below its trend line (red) by -4.08% thereby confirming the current bear market trend. The international index now remains -8.14% below …
The Stimulus Bill
Stimulating the economy at all costs has been the mantra of the past few months. Even the current G-20 meeting London will have its main focus on how to improve economic conditions worldwide. Personally, I don’t expect anything in terms of a tangible action plan since some participants are not convinced that reckless stimulation will bring the desired results. Reader …
The Geithner Plan Explained
Some readers have asked how a private/public partnership to remove toxic assets from banks’ balance sheets would actually work. Much has been written about it, although not always in understandable terms. Hat tip goes to Mish at Global Economics for pointing to the following video, which attempts to clarify the details of its implementation. You will probably be as surprised …