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SyndicateTwo

05/13/09 4:09 PM

#463 RE: valuemunger #462

Well, if I knew the algorithm I'd be selling software myself for $5k a piece.

Just kidding.


But basically it's very simple what it does and I don't know why no one else hasn't created a cheaper way of doing it. I'm actually suprised MetaStock doesn't do it.

What it does is take the last 10 years let's say of yearly charts, plots them all together over each other and then is able to find very specific times of the year by comparing each of the charts as to which is the most consistent times to short or buy. You find those and then look at a regression chart to time the entry going into that seasonality period using out of the money calls or puts.

Nailed TRMB and AET.

ARO is another beautiful setup here for a short. However, the timing is going into late May/June for a big decline through July/Aug.

So, let's hope we get a monster rally in it to setup large out of the money puts!