Monday, March 10, 2008

Hindsight

This is my favorite tool when I judging the overall health of the market. Simply put, if the line is above the blue, things are OK. If not, it's going to be tough. It doesn't give a bearish signal very often, but when it does, watch out!

I kind of ignored this chart during the last couple of months but it has been to my peril so far.

I'm going to keep on doing what I do, but if I continue to struggle, I may sit on the sidelines for a while and re-evaluate my strategy and how to handle things during a struggling market.

1 comment:

Anonymous said...

Can you update the post to describe more about that tool you're using. Looks like a really useful one. I love the way it called the bear market from 2000-2003.