A tiny gain
I managed to squeeze out a .14% gain today. I'll take it.
The weekly chart of the S&P 500 looks pretty ugly.
However, if I would have followed the trends (trend changes indicated by arrows) and sold when the trend flipped to the downside and bought when things were trending up, I would have ended 2007 with a 53% gain (instead of 40%). This year I'd be up nearly 20% instead of down 12%. Interesting stuff.
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6 comments:
Scott, can you share how you came about putting the red and green arrows where they are? Thanks!
I use a program called SnagIt to capture and annotate the charts I show. It is extremely easy to use and looks great in my opinion. This is their website.
http://www.techsmith.com/screen-capture.asp
Sorry, i meant why did you put the red and green arrows where they were? Is it just the crossover point?
What a dork I am. They are pretty arrows aren't they?
The red arrows indicate new trends to the downside while the green ones are trends to the upside.
Trends are your friends.
Scott. I dont think its you, more than the way i am asking the questions. What is telling you that it is a trend to the upside or downside? I assume its the crossover point but the green arrow isnt indicating that. Thanks again,
According to DOW theory, for a new trend to be defined an uptrend has to make a higher high and a higher low. The trend is not confirmed until the first higher high is surpassed (after the higher low). That's what the green arrow is indicating--the higher high has been taken out.
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