In this chart I plotted the 4 trend indicators scores I use vs. the S&P 500 over the past year and a half. The composite oscillates from +4, when every indicator is positive, to -4, when every indicator is negative. There's nothing all that remarkable here; trend indicators reflect the "trend" of the market. However, note the readings in early 2007. The composite never dipped below zero even though the market got slammed pretty hard.Trend Indicators aren't very impressive during bull markets. They typically dictate keeping money off the table when markets offer the greatest opportunities. Trend indicators provide their real value during bear markets, when stocks are taking a beating.
1 comments:
Yes, that was a sobering view. I'll wait for the bear mkt view/value.
Great chart. I can imagine the work. Charts can speak volumes, Thx again.
Japser
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