Tuesday, October 1, 2013

How to detect market plunges



No one including all the Federal Reserve chair men and all the Nobel-Prize winners in economics can predict market plunges. Many predicted correctly market crashes by pure luck and some even get Nobel Prizes and become famous. There is no model and formula to predict market plunges except my simple chart described in this book. 

It works for the last two market plunges and hopefully it will work to the next market plunge. The chart depends on the falling stock prices, so it will not detect the bottoms and peaks precisely, but it will prevent further losses and reenter the market for larger gains. The chart is very simple to use and there is nothing to buy or subscribe.




How to detect market plunges



 Exit the market when S&P 500 index is below the red line and reenter the market when it is above the red line.
.
Market Plunge
Peak
Bottom
Exit
Reenter
2000
08/28/00
09/20/02
10/01/00
06/01/03
2007
10/12/07
03/06/09
02/01/08
09/01/09



08/01/11
11/01/11

I was shocked by the incredible return by using simple market timing (exit and reenter the market only 3 times from 2000 to 2013).

Summary info:
.
S&P 500
1-2000 to 9-2013
With Market Timing
Without Market Timing
Better
500%

Gain
1,000
167
Gain %
68%
11%
Annualized gained
5%
1%
Days
4,959
4,959

Click here on how I calculated the returns. Actually it is far better than 500% by buying contra ETFs in existing the stock market.

It will detect the next market plunge. It is based on the stock prices, so it will not detect the peaks and bottoms precisely. It will prevent bigger losses. Hopefully it will give us ample of time to react as the last two. It will not be as effective if many follow the same chart.

Order info.: Gifts keep on gifting for life. Click here or

Amazon.com: $19.99 for the paperback (499 pages) or $9.99 for the Kindle version.
Add “Scoring Stocks”.
$9.99 PDF http://ebtonypow.blogspot.com

2 comments:

  1. It sounds like an interesting series. I will check it out

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  2. This article is mind blowing. When I read this article, I enjoyed.


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