22 Jun 2010
What are the weaknesses of the model?
2 key weaknesses: 1) Trendless volatile markets are ... personal risk tolerance. Keep in mind the model has outperformed every market cycle back to ... such stocks, overriding the sell signal from my model. Fortunately, such times are extremely rare. Ultimately, ...
22 Jun 2010
Why has the Dr K MDM systematic model done so much better over the long 35 year time frame from 1974 to 2009 compared to the last few years?
... the TYH during 2009 in the FAQ "What are weaknesses of the model." Case in point: Theoretical results trading TYH from March ...
25 Sep 2014
Please explain how quantitative easing (QE) has introduced material changes to the model.
... in this full bore QE environment which gives MDM the potential to more quickly switch out of its SELL or CASH ... the MDM the potential to move more quickly to CASH or to SELL in the event the market looks weak after hitting ...
29 Aug 2016
How far up can I buy a stock after it is recommended? What if Market Direction Model is on a sell?
... with that principle. And what if Market Direction Model is on a sell? A: First, we ... this is a sign of strength in a weak market, but it doesn't mean you should ... . This includes all the stocks we find potentially actionable, thus should b e monitored for ...
09 Feb 2022
How do you build crypto positions during weak markets?
... the established altcoins at strong support levels and/or considerable weakness, down 70%+? Or would you still be waiting for BTC ... same time, I do look for high quality coins bucking weakness in BTC and/or ETH. There are also times when ...
20 Jan 2012
Is your model discretionary in any way? Do you only adhere to the market direction model rules in your book?
... confluence of reliable secondary indicators showing either strength or weakness in the markets. Highly unusual one-time news ... change is quantitative easing, which began in early 2009. The model adapted, creating systematic rules to allow for this material ...
23 Dec 2011
I was curious as to the reason why your Model would switch to a buy today and IBD's Big Picture did not go back to Confirmed Uptrend? What is the benefit of your model over IBD's model?
... , thus confusing readers. My Market Direction Model is based on statistical studies going back ... I rely on my model as I know its strengths and weaknesses. In 2009, I ... in Dec 1994. I found that my model had, not surprisingly, well outperformed theirs ...
29 Nov 2011
How has Dr K MDM systematic model done against some of the best timing sites on the internet?
... such as quantitative easing in 2009. The discretionary portion of the model is left up to position sizing and diversification. Sidebar: Here ... not the best: He jumps on the stocks with huge potential near the beginning of a new trend, then pyramids his ...
01 Oct 2010
When the Timing Model signals a buy or a sell, do you automatically buy or sell stocks?
... , on a buy signal by the timing model, we may already have bought one or two ... SSS) reports on stocks we believe are showing weakness, though with the caveat that should the market ... a neutral or sell signal issued by the model, we will let any stocks we own ...
15 Sep 2010
One of the most important but often neglected parts of CANSLIM is the M, the need to time the market. You have created your own market timing model. Can you describe it and how it differs?
... leadership) into a complete picture. I continued to refine the model as my ability to identify proper distribution (selling pressure) and ... continue to refine their ability to interpret the strength or weakness of a basing pattern in a chart. Now, the M ...