Clive wrote:
Mebane's Quantitative uses the stocks own 200 day moving average (10 month moving average) as a stop-loss trigger point.
He also advocates another more aggressive approach that doesn't use 10 month MA. He tracks his five asset classes monthly and buys the 2 that have the higherst 1, 3, 6, 9, 12 month (averaged) return, and sells any position that has fallen out of the top 2.
This is a "fully invested" approach, so you're always in the market.
In reality, I think he uses more than the 5 basic asset classes.
"All men's miseries derive from not being able to sit in a quiet room alone."
KevD wrote:
Talk about poor timing. I just noticed that Decision Moose made the switch to gold on April 29th! Right in time for a plunge.
It switched out of IWM, which also went down. Not as much as gold though...
"Well, if you're gonna sin you might as well be original" -- Mike "The Cool-Person"
"Yeah, well, that’s just, like, your opinion, man" -- The Dude
Clive wrote:
DM is in IWM at present, but SPY is showing slightly better relative strength and is a close contender to taking over the lead holding. Williams %R however is indicating SPY as overbought and IWM as oversold, so I'd guess that DM will continue to hold IWM for the time being, at least for another week as its pointless rotating between two assets that tend to run quite closely together anyway.
Since DM switched into IWM on 10th Feb, IWM is down -1.3% whilst SPY is up +2.2%
You pegged it - the Moose switches to SPY this week.
The Moose seems to be consistently late with its recent calls. Its been chasing the markets around for quite a while now and missing out on most if not all of the returns.
