Algokid

Best Stock Market Indicator Ever !!!

INDEX:S1TH   S&P 100 Stocks Above 200-Day Average
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Saw this article on Advisor Perspectives website a while back ( one on the best financial website on the web btw), and decided to share it here. S1TH ( SP 100 stocks > 200 MA index) is a technical indicator that investor can use to find conservative entry and exit point for the stock market. It basically finds the best time for conservative investors to make money. Description continues in comments

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Would you explain the detail of macd, rsi, and stochastic parameter? Thanks
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2 out 3 supporting indicators are positive, index above 65 %, as per the system , market is "TRADEABLE"
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Algyros Algokid
I did some primitive backtests, and just using the index seems to produce better results than using the index plus indicators. My criteria were: long above 65%; cash between 65% and 50% when the index is descending from above 50; short below 50%; long above 50% when the index is rising from below 50.

Do you have any thoughts on this simplified Carlucci system?
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**Note: the author uses monthly data for this index.
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As per the system rule , this market is still "untradable"/ all three supporting indicators are negative, even if the index is at 76.23 %. September should be a very interesting month. Enjoy the of your weekend.

Algo
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admin Algokid
thank you for the update!
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All three indicator are negative ( RSI ,MACD, and STOCH) . Market still untradable
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As per the system , the market is now "untradable" . Even if the Indext itself is at 87, 2 out 3 supporting indicators are negative ( the Stoch and MACD). Now what does this mean ? does it mean you should sell all your positions ? not really . However, it will be wise to place stop or trailing stop loss on those position. Please refer to the attached chart for the latest update. I made some modification to the MACD study.

Cheers

Algo
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According to this system the market is tradable. Not rational, tradable. Have a great weekend
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