Over the last 5 years Investors411 has outperformed the benchmark S&P 500 and almost all major US indexes. For more on this see Overview section .
Chief Strategies
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AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING
Buy the Dips
- Investors411 uses the New York Stock Exchange as an overall barometer for almost all of the recommended ETF’s except GLD.
- This is NOT your fathers buy and hold market . Under 8 years of Bush the Dow went from 11,000 to 8,000 and left a whole dung heap of economic problems.
- There are dozens of Indexes and Oscillators you can use to judge a dip. Investors 411 tries to KISS = Keep It Simple Stupid .
- Therefore 411 uses the McClellan Oscillator as a guide to buy and when to sell. Because its KISS and reasonably accurate in short and mid term trades/investments.
McClellan Oscillator
$NYMO (chart of shorter term) and $NYMO (2 year chart) The NY Stock Exchange McClellan (EOD) Index measures how much the NYSE is oversold or overbough . Basically
- Oversold conditions = (@ -60 ) = buy
- Overbought positions (@+60) = sell
The closer we get to +/- 60 the better our chances of making money by buying or selling. Markets simply runout of buyers when they get over extended in either direction. There is no 100% clear buy or sell signal at + or – 60. So its best to use these numbers as guideline.
Investors411 is focused on this index because it uses it as signal of when to add or subtract from ETF positions. The USA is still the biggest economic dog around and the MI reflects what happens to the New York Stock Exchange. When the NYSE is moving higher/lower other worldwide indexes follow
Other Significant Charts/Indexes
Volume (#1) and How markets react to news (#2) are 411’s top forecasting tools . This is discussed daily in Technicals, Fundamentals and Analysis section of post daily. Currently Investors411 is following the following Charts/Indexes to help predict market direction.
- BDI (3 year chart) - The Baltic Dry Index measures the flow of goods by price (world trade) . It is a good measure of how much China is buying. In May of 2008 it reached a high of 11,771 then by Dec of 2008 a low of 663. By early January it had risen to a high of 4291 then dipped and recovered to a higher high of 4643. It has since fallen to around 3000 at the start of 2010. Basically, - the better the flow of world trade the higher stocks (especially China) will go.
- $USD - The US Dollar Check out the 6 month chart (to the left) or a multi year chart of the US dollar of the US dollar . Mantra in recent years - Dollar up = US stocks down & Dollar down = US Stocks up Often this inverse correlation exists, Sometimes it does not. Any move over +/- 0.50% is significant .
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING
