cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Thought I'd bump this and point out that this metric would have taken you out of the market in late 2007 at around 1480.
We've fallen dramatically away from the 200 day moving average, so it looks like it'll be a while before we get back to it. In the 2000-2002 drop the decline was pretty gentle, with the 200 day MA following it pretty closely down and back up. Not this time.
This would make it three out of the last three bear markets that this metric worked almost perfectly...it does leave a little money on the table on both ends, not nicking either the lowest low or the highest high...but dang if you'd followed this rule you'd be doing pretty dang well.
Could it really be this easy?
We've fallen dramatically away from the 200 day moving average, so it looks like it'll be a while before we get back to it. In the 2000-2002 drop the decline was pretty gentle, with the 200 day MA following it pretty closely down and back up. Not this time.
This would make it three out of the last three bear markets that this metric worked almost perfectly...it does leave a little money on the table on both ends, not nicking either the lowest low or the highest high...but dang if you'd followed this rule you'd be doing pretty dang well.
Could it really be this easy?