Reader Richard had some interesting thoughts on what he considers market manipulation and asks whether it might affect trend tracking in general: I really value your work and daily comments; so what I am about to say is not meant as a negative reflection on you or your tracking signals. My concern is the ability to “trust” them, when it …
No Load Fund/ETF Tracker updated through 6/4/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpIncreased unemployment figures today did not derail the gains made earlier in the week. Our Trend Tracking Index (TTI) for domestic funds/ETFs has now crossed its trend line (red) to the upside by +0.80%% keeping this week’s buy signal intact. The international index has now broken above its long-term trend line …
Holding Up
It could have been a lot worse yesterday but, as we’ve seen quite often lately, a last hour buying spree limited the risk of a nasty slide. Despite Fed Chairman Bernanke’s rhetoric that the recession will end this year, the markets seemed to ignore his words of encouragement. The main focus this week will remain on Friday’s employment numbers. The …
Domestic Buy Signal Generated
Given this week’s run-up, the markets held up well today and pushed our domestic Trend Tracking Index (TTI) clearly above its long-term trend line by +1.30%. This is where the rubber meets the road, which means that a Buy Signal for broadly diversified domestic equity funds/ETFs has been generated. For tracking purposes, the effective date will be tomorrow, June 3, …
Almost There
Today’s market activity pushed the major indexes higher and with it our Trend Tracking Indexes (TTI). The domestic TTI has now crossed its long-term trend line by +0.97%. I will wait another day to see if this was just a one day pop followed by a drop on Tuesday before declaring this a new Buy signal. The domestic TTI only …
Sell Stops Revisited
Trailing sells stops are an important part of trend tracking in order to protect capital by guarding against vicious long-term trend changes such as we’ve seen last year. Common sense would dictate that any investment approach should incorporate some kind of an exit strategy but, unfortunately, most investors and advisors have not caught on to that simple bit of investment …