RE: US Stocks - Watchlist and Discussion (Premium)
(2015-08-31, 06:09 PM)isatrader Wrote:(2015-08-31, 06:18 AM)JimStudent Wrote: A shout out and much thanks to gbarbs and shaunattwood for posting and helping us keep our eyes on the trend and what Stan would focus on.
One of the reasons I am so appreciative for your posts is this board has gone so quiet, which I don't understand. This is one of the most exciting times to be following the market since I first read 'Secrets for profiting in Bull and Bear Markets'. Unfortunately, I was so busy reading and listening to so many voices that I missed Stan's perspective on what was happening in August.
Your posts are helping me focus on Weinstein's instructions. Thanks again!
Also thanks as always to Isatrader for all your insights.
Hi Jim,
The reason for the board going quiet is because I've had to scale back the time I spend on here due to an increased workload running my design business, which is giving me very little free time for anything else. And I was doing around 80% of the posts on here, as the majority of members mostly read the site but don't tend to get involved.
My original hope with the website was that there would be less lurking from members as time went on, and that more people would get involved as their understanding of the method got better. However, this hasn't happened, except for a few core members, and so it still relies on me for the majority of new content, and so with my limited time at the moment I need other members to apply what they've learnt from the site and have discussions about promising stocks showing the right attributes.
As far as the markets go, even with the more limited posting that I've been doing, I began highlighting the various breakdowns in the market breadth charts back in early June, which along with the behaviour of the stocks in my portfolio caused me to exit all of my long positions on the 9th June and go to 100% cash as I mentioned at the time in my trading journal thread. Since then I've highlighted that the Weight of Evidence from the market breadth measures has continued to get even weaker, and so I think at the very least, people following Stan’s method that read the board should have seen the increased risk factors well before the August breakdown as there was multiple posts highlighting that the Weight of Evidence was showing that more stocks were in Stages 3 and 4 than they were in Stages 1 and 2, and the major US indexes themselves (which lag individual stocks that make up the indexes remember) were showing signs of Stage 3.
So personally I think the method performed beautifully with this recent breakdown, highlighting the increased risks in the US market well in advance in the weight of evidence, and via the multiple failed breakouts and majority of stocks moving into Stages 3 and 4, then finally the indexes themselves.
isa you mention the weight of evidence and the % of stocks in stage 3 and 4 being larger than 1 and 2. Can you point me to that? I would like to follow that for sure and think I overlooked it, or is it presented as something else?
Personally I had not been following the method for some time but returned when I got access to my retirement funds to manage. Perhaps I was a little too anxious to put it somewhere and the only place i thought looked good was regional banks. That in itself should have been a clue as I did not see much strength anywhere else. Certainly would have paid to keep up with the blog.
With that being the case, i lost about 5% of my account in part due to sell stops. I started focusing on short etfs to enter:
REW, SKF, SMN, SSG, SIJ (attached charts)