buy signal

Fed Rate Cut

August 18, 2007

On Friday, the Federal Reserve cut the discount rate by a 1/2 pt. They cut the discount rate — NOT the Fed Funds rate. Understand, the discount rate is the rate banks and brokers are charged to borrow from the Fed. This doesn’t change rates you and I are charged. The Fed believes the “pressure” [...]

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How the Bullish Percent Index works

July 10, 2007

How the Bullish Percent Index works To understand how the bullish percent index, our main coach, works, you need to begin with and understand three main concepts. First, the bullish percent index merely measures the percentage of stocks currently on buy signals. It’s simply a chart that runs from zero to 100%. Second, the only [...]

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The Tide Is Starting To Move Out

June 28, 2007

The primary indicator that I follow, the New York Stock Exchange Bullish Percent chart is within 1% of a move from a column of X’s to a column of O’s. This kind of shift indicates a move from offense to defense. Moving to defense does NOT mean that the market will start moving down. In [...]

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Economics 101

May 20, 2007

A “buy signal” occurs when there is demand for a stock. You know from Economics 101, anything in demand will see its’ price rise. The “Bullish Percent” is a way to count all of the buy signals. That tells us the *percentage* of stocks that are currently on buy signals. This is really important, because [...]

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Market Down Today

February 27, 2007

As I am writing this, the Dow Jones is down nearly 180 points. Sounds like a lot, right? That’s about 1.5% By comparison, October 19, 1987 the market dropped 22% in one day. Perspective does matter. Anyway, the last few days, I’ve seen headlines like: – Greenspan Thinks U.S. Heading Toward Recession – High-Risk Lending [...]

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Less Than One Percent

February 24, 2007

Think you would you be HAPPY earning less than 1% a year on your money? Many people are…and you might be one of them! Look in your retirement plan, or 401k at work. Say we invest it in the S&P 500 Index at the end of 1999. Leave it there. You’re supposed to be a [...]

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Defensive Steps, part 1

January 20, 2007

Dizzy From The Stock Market Roller Coaster? Here’s How To Get Off: I want to share with you the part of my playbook I use when the market starts falling.  Although that is NOT falling now, it also wasn’t raining when Noah built his Ark. It’s just better to be prepared then to make decisions [...]

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Defensive Steps, part 2

January 20, 2007

Should we just sell everything and raise cash when the market flips from offense to defense?  The short answer is NO. Look, going to 100% cash is a very aggressive call. We’d have to be pretty certain there’s no hope at all for the market to make a decision like that.  It’s the most aggressive [...]

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