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I have been trading these signals for the last 9 months with very good
success and wanted to share it with you.
Sincerely,
John
>==========================================================
>"Buy the Dip" Signal for Thursday!
>==========================================================
>
>As of the close yesterday, Wednesday 3/15/00, the Nasdaq 100 index has
>declined
>10.0% from its peak set just last Friday. This constitutes an official
>"Buy the Dip" signal.
>
>To "Buy the Dip", you add money to your account, or if you are using Dollar
>Cost
>Averaging, you accelerate one DCA.
>
>To learn more about how to "Buy the Dip", you can review my tutorial at
>http://www.fundtrader.com/tutorialarchive.htm.
>
>This is the third time this year that the Nasdaq 100 has corrected 10% from
>its peak.
>That's three corrections in less than three months! The Nasdaq 100 has
>certainly
>become a volatile market.
>
>The two previous corrections ended very quickly. The first was over in 3
>days. The
>second correction ended after 5 days. Today, we are in the 3rd day of the
>correction.
>
>After the first correction this year, it took only 9 trading days to make a
>new high.
>The second correction reversed at a faster pace, making a new high 6
>trading days
>later.
>
>No one can say for certain whether the current correction is a temporary
>buying
>opportunity, or the beginning of a bear market. Because 8 of the 10
>trading systems
>selected for the Multi-Strategy Portfolios are currently bullish, I believe
>the Nasdaq
>100 will rebound quickly and make a new high.
>
>Is it possible for 8 out of 10 trading models to be wrong? Yes, it is
>possible,
>but not very likely. The most likely scenario is that we have seen the
>bottom
>of the correction, or are very close to it. It would be unusual to see the
>Nasdaq 100
>drop more than 5% from here (see below).
>
>Also, consider that the Nasdaq 100 index is still up 20% from the low point
>of the
>last correction. Hopefully, this "Dip" is just another temporary
>pull-back, as we
>zig-zag to higher levels.
>
>I have posted a study on corrections in the Nasdaq 100 index at
>http://www.fundtrader.com/ndxcorrect.htm. If you follow my seasonal
>strategy,
>you know that we are currently in a "strong" season for stocks, which began
>on
>October 22 of last year. Since 1983 (the start of the Nasdaq 100), and
>during the
>"strong" season, corrections in the Nasdaq 100 have never exceeded 15%.
>
>However, during the "weak season", which typically runs from mid April to
>the end of October, there have been 6 corrections that exceeded 15%,
>including the 3 stock market crashes in 1987, 1990, and 1998.
>
>Of course, there is a first time for everything, as the saying goes, and
>perhaps this
>will be the first time since 1983 (17 years) that the Nasdaq 100 corrects
>more than
>15% during this time of year, during the "strong season" for stocks. The
>key will be
>cash flow. Strong cash flow into the stock market during the current period
>tends
>to support stock prices. Hopefully, new cash will start to flow into this
>market, perhaps
>sometime this week, as individuals add to their IRAs before April 15.
>
>==============================================================
>Managed accounts are less expensive than you think
>==============================================================
>Starting at $16.67 per month with a $10,000 investment. Order a free
>investment kit by clicking on <http://www.fundtrader.com/managed.htm>
>
>Mark Vieno
>http://www.fundtrader.com
>mailto:fundtrader@xxxxxxxxxxxxxx
>703-548-0107
>
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>Thanks!
>
>Mark Vieno
>http://www.fundtrader.com
>703-548-0107
>
>P.S. A managed account is less expensive than you think, starting at only
>$16.67 per month. Click here <http://www.fundtrader.com/managed.htm> to
>request a free investment kit.
>
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