The end of the third quarter was down right ugly. The end of Sept timing model sell signals proved out pretty well this month, preserving an investor’s capital. Lets look at the month end results to the timing model. For background on the model see here.

The timing model status as of the end of Sept are:

The new signal this month was a sell signal for commodities, DBC. The only allocation in the model signaling a long position is bonds, IEF. An investor using this model would currently be 80% in cash and waiting for an upward moves to close above the 200 day moving averages.

 


4 Comments

doogy (@dougnashif) · October 4, 2011 at 12:38 pm

This is a good indicator. Are you interested in technical analysis Paul?

    libertatemamo · October 4, 2011 at 1:11 pm

    It is a great indicator. My default recommendation for most investors who don’t have the time to pick individual stocks, is the timing model, vs traditional buy and hold. I manage my parent’s money with a variation of the timing model.

    I use technical analysis as one of the tools to select my trades. It’s a tool that improves my odds of winning trades.

    Paul

      doogy (@dougnashif) · October 5, 2011 at 4:08 am

      Two of my trading associates are very large brain traders like yourself who specialize in tech analysis and are by far the best traders I have met in time I have been studying tech analysis. They each host free chart analysis where they post everyday for groups of traders who follow. Although they each have their own distinctive styles and somewhat different methodolgy I’ve learned a ton from them both and enjoy looking forward to the daily charts that include bull/bear ratios, summation index, and some proprietary supp/resist levels for futures scalping (which I know does not interest you) but also the broader market turns. If you are interested in checking them out I think you might find them very interesting. Let me know and I will pass the info to you via email anytime.

        libertatemamo · October 5, 2011 at 9:24 am

        Sure Doug, pass it along. Always willing to learn from smart people.

        Paul

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