The first thing we would like to make clear to everyone is that our Goal is not to predict the exact top or bottom at any given instance. If we do happen to predict this as has been the case in the past, we will assign this feat to lady luck. Trying to predict the exact top or bottom is an exercise in futility and best suited for fools. What we look for is signs of topping or bottoming action. Once we spot this, we use our proprietary tools to determine entry points that offer the best risk to reward scenarios. Up until 2012, the ultimate timing indicator and the Smart money Indicator were the primary tools we used to determine this action. However, as Of Dec 2012, we replaced all the instruments with the Trend Indicator. As of now, this is the primary instrument we employ to determine market direction. Once we have identified that we use the secondary tools to validate the signal.
You might find our recent article interesting: Why you should not be Worried about A stock Market Crash
The Ultimate Timing Indicator
We combined 39 tools into one to come up with this indicator. This tool allows us to spot markets that are close to bottoming or topping. This data is examined in multiple time frames to confirm that the signals are valid. The time frames we focus on our the daily, weekly and monthly periods.
We are always adapting our mindset and our indicators to the ever-changing face of the markets. We believe that if one does not adjust to the situation and hand, one will die, and so we continually strive to improve our tools and will continue to do so for the foreseeable future. This is why we have come out with an even better indicator, one that we believe is our best indicator to date, the trend indicator.
Some random factors to consider April 2020
This market has yet to experience the “feeding frenzy stage; as the masses have taken so long to embrace this market, this stage is going to be spectacular. Expect the markets to take off vertically once the masses jump in; it seems hard to believe that the Dow could take off like a rocket, after such a massive correction, but that is exactly what will happen once this hysteria subsides.
We have seen the same paranoia before, take a look at the above chart. We have had such deadly outbreaks before, but in the end once the panic subsides, the markets resume their upward trend.
At the Tactical Investor saying; “every disaster leads to a hidden opportunity” and the only way to spot that opportunity is not to give in to panic. We envision a similar outcome for the coronavirus, the markets could still sell-off but that sell-off should be viewed through a bullish lens.
From a psychological perspective, the longer the masses resist, the better it is, for it means this bull will continue to trend higher. Use strong pullbacks to open positions in quality stocks. Forget the noise and focus on the trend.
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