The Trend is your friend everything else is your foe
After the financial crisis of 2008, the Fed virtually eliminated free market forces; this was primarily achieved with through the several rounds of QE and then by keeping interest rates below what the markets deemed as normal for an extended period. Even today with the few rates increases that the Fed has implemented, interest rates are at historically low levels. Hence the concept of free markets is virtually moot.
In such an environment it is almost dangerous if not foolhardy to employ and rely on the tools of yesteryear such as fundamental or technical analysis as all the data today is contaminated or manipulated. We have always placed a great deal of emphasis on Mass Psychology, but with this game-changing development, we decided to combine the best aspects of Mass Psychology with the most crucial elements of Technical analysis and this lead to the birth of the trend indicator.
The Trend Indicator determines the Trend In advance
The trend indicator can calculate the trend on the hourly, daily, weekly and monthly charts. We focus on the weekly and monthly charts as we are position players and not traders. Position traders make the bulk of the profits; day traders usually get their heads handed to them almost on a daily basis. The trend indicator has eliminated the following aspects of financial analysis.
- Eliminates the need to try to determine key market turning points, which for the most part is an exercise in futility as most services attempt to determine the exact spot, the market will change course. Instead of focusing on market topping and bottoming action, they are trying to identify the actual turning point, and that’s like a catching a falling dagger. With the trend indicator we don’t need to waste time on such antics; if the trend is up, we use pullbacks to add to our positions, and if it’s down, we use rallies to open new shorts.
- We know the trend so the “stress factor” has been virtually eliminated. Strong pullbacks are viewed as buying opportunities if the trend is up and vice versa.
- We don’t have to sift through meaningless reams of data no waste time on determining the internal or external structure of the market. We also don’t need to spend time focusing on meaningless market omens or theories like the “Dow theory” which are losing their value in the era of easy money.
Predict Market Tops and Bottoms in advance
The central dilemma most investors face is trying to determine the trend of the market. If you get the trend wrong, then the best of stocks is going to have a hard time holding onto its gains in a market that’s pulling back strongly or crashing. With the trend indicator this point is moot; as we know the trend in advance, all you need to do is compile a list of stocks you would like to own or short; if the trend is positive (up), we use sharp pullbacks to add to or open new positions and vice versa.
This removes the need to do endless hours of research or watch the penguins masquerading as experts on CNBC, issue proclamations that are on par with rubbish. One should understand the difference between topping and bottoming action from that of trying to predict the exact top or bottom. We are not going to insult your intelligence by informing you that we can predict the precise point at which the market will turn. However, the trend indicator accurately determines whether a market is in the process of putting in a top or a bottom. Armed with this information, you have the power to plan all your moves in advance of the event. Fear and stress become relics of the past
The Trend Indicator Focuses on what matters and ignores the noise
Not having to waste endless amounts of time on trying to figure out where the markets are headed leaves one with ample time to do the things they love. Investors can also if they desire, spend some time compiling a list of stocks they would like to own. For the record, we do all the analysis but there might be some stocks you would love to own that we might not be following at the moment.
Another great benefit is that we no longer have to worry about determining if the data is corrupt or not. It does not matter as we know the trend, the only thing we need to focus is on is identifying strong companies to open positions in if the trend is up and vice versa. Investing takes on a whole new twist with the trend indicator, and it makes investing a whole lot of fun.
The Trend Indicator eliminates the “stress factor” of Investing
Here is an example of how the trend indicator can help remove or almost eliminate the “stress” factor from investing. If you knew in advance that the present downward move was just a pullback and not the beginning of a crash, your reaction would be completely different. Instead, of panicking you would be embracing the pullback for it would provide you with another opportunity of purchasing quality stocks at a bargain. From now on time would be one your side; it would be working for you and not against you.
We back-tested the trend indicator with 50 years worth of data, and in each case and it passed with flying colours. In each instance, it was able to identify when the markets would top or bottom. Keep mind we are looking at trend changes and not exact market turning points. The indicator has also been in real time for over five years, and the results have been just as impressive. You can take a look at some of our recent calls here.
The Advantages of knowing the trend in advance is priceless
There is nothing much to add here as this is something all every trader would love to be able to do; armed with this info, investing becomes fun. Fear is replaced with Fun and misery is replaced with joy. All you have to do is come up with a list of stocks that you would love to own, and that’s it. Well, you don’t have to come up with this list as that’s our job, but if you would like to own stocks that are not on our list, you know have ample time on your hands for this task.
Leave the market analysis to us, and spend time doing things you love, instead of wasting it on things that might heighten your fear. Market direction is no longer an issue, so you can sit back and enjoy the ride.
Trend Indicator In Action
To See the Trend Indicator in Action Visit this page
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