Market Timing Strategies

Posted: June 8th, 2009 | Author: | Filed under: Uncategorized | Tags: , , , , , | No Comments »

As stated in a previous post I will be adding various market timing strategies to this site. I do not think one market timing strategy or one type of system will work in all markets, all the time. For this reason I plan to add market timing systems and strategies in the following categories:

Trend Following System– These Systems will embrace the existing trend of the market and not attempt to predict it.

Interest Rate Model – Is the current interest rate environment favorable to business?

Market Breadth – How broad based is the current move? Are only a few issues leading the market?

Market Sentiment – This is a measure of market or crowd psychology. When these measures reach extremes the market is likely to turn.

Seasonality – Some times of year are better than others to be in the market.

Market Fundamentals – Reference to these numbers will let you know if the market is priced high or low relative to history.

It is my hope that by using multiple systems from these categories we will avoid the risk of betting on one system that may breakdown at certain times.


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