2 TRADING CHARTIST

[TREND1]

2/14/19 THE CHARTIST 90% RULE The Chartist 90% Rule, which was one of our proprietary indicators revealed for the first time in the June 5th, 1980 edition of The Chartist, flashed the latest rare buy signal on April 19, 2016. Only ten previous buy signals have been generated since 1970 with the last one taking place on October 13th, 2010. Thus far, all of the previous Chartist 90% buy signals have proven to be successful.
Here’s how it works. Whenever 90% or more of the stocks on the NYSE manage to rise above their respective 50-day moving averages, it is a strong indication that the market has managed to generate enough thrust to continue rising for several more months. As you can see from the chart on page three, 86.71% of the stocks are currently above their 50-day moving average. Note: As you can see by the printout, there have been eleven previous buy signals since 1970, and they were all generated during periods when the market was overbought and appeared to be
vulnerable, which was certainly the case at the time of the recent signal. Again, in reference to the printout, all of the previous Chartist 90% buy signals resulted in gains of 7.7%, 13.4%, and 15.7% by the S&P 500 over the next three, six, and nine months.