Hi 89, Re: v-Wave vs MRI.................
Years ago I started gathering a lot of data and created something I called the "Idiot Wave." That database and spreadsheet was part of what I offered each week at the old AIM-Users.com web site. It had four components, Relative Valuation, Speculation, Divergence and IPO Zeal. Each could on its own signal a bearish, neutral or bullish condition. When they sync'd up in any particular combination and number to be either bearish or bullish the total reading was more valuable than the individual readings.
When the old IW (now the MRI) was taken 'private' I felt a need to leave the AIMers here with something that would be a reasonable substitute. Both the MRI and the v-Wave give an approximation of the available cash one should keep on hand for an AIM account through various market conditions. Both have reasonable track records.
While I know the inner workings of the MRI after nearly 40 years of record keeping, I don't know exactly how the Value Line Appreciation Potential is formulated. I trust the VLAP data even without knowing how it is derived. When we constructed the v-Wave, we did so to err on the conservative side. So, the cash reserve recommendation is the basis on which one could base an AIM holding when starting a new position or as an overall target for on-going AIM engines. I figured individuals could factor the v-Wave suggested cash to what fit their individual AIM activity.
It impressed me that the v-Wave and the MRI followed essentially the same patterns even though they were derived from completely different sources. I'll see if I can create a graphic of the two to show their similarity in cash suggestion over time.
Hope this helps,
Tom
Buy from the Scared; Sell to the Greedy.....
