PriceTeam

[PriceTeam]

Land! Perfect. Thanks. Check out this quote:

“Technical analysis on its own as a discipline does not work,” said Diane Garnick, the New York-based investment strategist at Invesco Ltd., which oversees $348 billion. Using it in isolation is “the fastest way to lose money,” she said.

More nonsense published about the market. I'll prove it in a few sentences and trading rules:

1. Pick a moving average that fits with your personality and trading/investing horizon--10, 20, 50, 200-day ma.

2. Buy when price climbs above that ma and the ma is flat and likely to turn up or is already pointing up.

3. Sell if price falls below that ma by [> 2 percent] and especially if the ma is flattening and likely to head down. Note: quick, small breaks of the ma when the ma is pointing steeply up are likely headfakes or overshoots. Also the numbers in brackets are variable and an area for continuous improvement. So try 1 percent to 5 percent and see what works best.

With the above information, it is extremely difficult to lose large percentages. For a long-term investor, these simple rules would have captured the profits last summer simply by watching price relative to the 200-day ma.

Strip everything else away--everything else you know. All other indicators. The beautiful arcing dome of the 200-day was the only prophet required in that instance.

Ted

PS
I was 100 percent cash and will start building short positions piece by piece. Not looking to make a killing here. So if I only get to 25 percent of what I would like before the market rolls, I'll be happy. I'm taking positions counter to the trend--with many good reasons--but I still want to be careful. The move this morning was explosive.

PSS
On the other hand I agree with Diane Garnick. Most TA does *not* work. That's why I started this board--to sort it out.