I recommend that each person find a strategy that they feel comfortable with. I've given you a few tips that I use, but I strongly suggest each person come up with their own strategy. The strategy that I use works best when I am the most diversified. (In other words, over time, you would want more than just Biotech. Find a few other uncoorelated indices. Maybe use foreign indices like me... China, Nikkei, Latin America, etc.) To get fully diversified using weekly charts takes A LOT of patience because the signals are so spread out. I do have additional information for Energy and the US indices that I use to give me more frequent signals.
It is the patience that pays off... the hardest thing to do for 99% of the people. I say, so what if one is only 10-15% as you buy the initial piece of your diversified portfolio. Over time, you will get more signals and slowly build your diversified portfolio. I think easing into something is the best way to go.
The key is pick funds that are not coorelated so that there is always something in the portfolio that is outperforming. The other key is not to buy in mid-signal... ALWAYS wait until your signal occurs before buying/cash/shorting.
I like to think of my strategy as an "actively managed diversified portfolio" using leveraged Profunds. By actively managing a diversified portfolio, I trade much less often and also identify good entries in which to add in.
Jan 4 - We have transitioned into a bear market. Completely different rules apply.
May 23 - IMO, any price at/above this close makes a great Nasdaq/SP500 short.
