03 May 2012
It has been few days since you updated your Market Direction Model. Is it showing a sell signal after the last few distribution days. If not, can you elaborate how far are we to seeing a sell signal.
... additional performance boosts by attempting to 'jump ahead' of the model's buy or sell signals. And trying to predict when ... more frequent in volatile, trendless years such as 2011), as it aims to capture intermediate term trends in the market, so expect ...
29 Nov 2011
How has Dr K MDM systematic model done against some of the best timing sites on the internet?
... 9 ... 100% cash on ... market activity by truncating trends and causing price spikes (bonds) and collapses (gold). It also shows how extremely volatile ... why the systematic portion of the Dr K Market Direction Model™ outperformed IBD's big picture market ... still ...
22 Jun 2010
What are the weaknesses of the model?
... ) Trendless volatile markets are the ... short on sell, 100% cash on neutral]: Nasdaq Composite $1 ... 28 Short 1728.9 1.18 73 ... market cycle back to 1974 as well as January 1929-December 1932 and has had only two down ... rare occasions, the model may still signal a sell ...
26 Aug 2012
Should I expect returns similar to those achieved by the model?
... system held up against a volatile instrument such as the 3x ... short on sell, and 100% cash on a neutral signal. Such instruments ... choppy, often trendless markets. That said, the model was still able to outperform ... late 2007. Furthermore, a +51.9% (17.3% x 3) ...
18 Nov 2010
Why do you suggest shorting S&P500 ETFs, not NASDAQ ETFs, even though your MDM signals are flashed by the behavior of NASDAQ index, not by S&P500 Index.
... to those ETFs showing the most strength. Studies have shown that those ETFs outperforming continue to outperform. Since markets correlate to ... weak, and other areas of the world are showing more strength, and the model issues a buy signal, I would advise ...
13 Sep 2011
How do I handle my ETFs on buy or sell signals issued by the model?
... signals: 1. The day when the MDM model switches from Buy to Sell signal, I ... day. 2. Likewise, the day when the MDM model switches from Sell to Buy signal: (a) Sell ... day. 3. The day when the MDM model switches to a neutral (cash) signal, I have one action: (a ...
12 Apr 2012
Why recommend pocket pivots in stocks in a particular group today when you then tomorrow decide that the whole group is behaving poorly?
... occurs. As an investor, you need to consider risk. The market looked very good yesterday, so if you took a position ... known at the time, and the market starts to get in trouble, why not just lose it and let the market settle down first?
01 Oct 2010
When the Timing Model signals a buy or a sell, do you automatically buy or sell stocks?
... to do. Thus, on a buy signal by the timing model, we may already have bought one or two leading stocks ... ) reports on stocks we believe are showing weakness, though with the caveat that should the market uptrend continue, shorting is not advised ...
22 Jun 2010
Is the systematic portion of your market direction model a black box in that it is computer programmable?
... though the rules are hard and fast for the systematic model, they still depend on this quality characteristic. Being able to size ...
14 Sep 2010
Regarding distribution days, I was wondering if your model takes into account the "zone of relevant action", when counting Dist. days. ie. when the NASDAQ moves up 5% from a dist. day....
... unnecessary to drop distribution days just because the market moves up by a certain percentage. Generally ... signal. In other words, strong uptrending markets do not issue enough distribution days to ... pivots even though the model was still on a sell signal.