Tuesday, July 20, 2010

Timing the Market, Part III

Extending the fascination with the 240 minute time frame even further, here are the 240 minute trend models of the VXX and DJIA covering the past six weeks:




Periods of pristine market timing like those shown above are often followed by periods of choppiness and whipsaws.  But the cycle re-asserts itself and good market timing statistically overwhelms the chop and longer term, losses pale in comparison to gains. 

As for current conditions, its easy to imagine a few whipsaws in our future, but the system says no, a trend is a trend until proven otherwise.


A


Past performance does not guarantee future results.