|STOCK MARKET TIMING U.S. STOCKS|
Strategy and Tactics
If the long-term direction of the stock market is rising, new positions are most safely taken when the near term turns positive, that is, when the current 'pond' which you can see on this chart fills up to the base line. This strategy best suits the buying and holding of broad market indexes. Individual stocks can easily go contrary to the overall market trend.
If your intention is speculation, consider selling when 'dunes' collapse into the base line. Typically, there is more than one dune across a significant market top. Each generally causes a selloff in stock prices. The second collapse leads into the larger price decline.
The site is not intended to address trading. Site data are refreshed only weekly. Thus the daily formation here usually will not be timely enough for short-term trades. Also, the short-term data have a much higher randomity component than the near-term or long-term depictions. Nevertheless, the weekly short-term picture may give a useful perception not otherwise available.
Near-term charts are reactive. They comprise stock-price behavior as it happens (daily data). The long-term charts are proactive. They forecast expected events ahead of time. All of these sets have randomity, but it is least troublesome in the near-term series.
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