FAQs Frequently Asked Questions
Despite the mostly bullish market since March 2009, if you look at a bearish year such as 2008, most of the model's gains were made on the short side, which is how it was able to finish 2008 up +38.8% using NO leverage, just 100% long/short/cash the NASDAQ Composite (1x ETF QQQQ makes a good proxy).
It would be nice to predict ahead of time which years will be bullish and which bearish, so the model can just focus on either its buy or its sell signals, but as O'Neil always pointed out when asked where the market will be 'X' months from now, no one has been able to do this consistently, so one must watch the market day to day and make decisions accordingly. That is what the market direction model does on a statistical basis as it receives new information daily.
|First published:||1 Feb 2011|
|Last updated:||1 Feb 2011|