For today, I thought I'd post some of the trading tips I learned from Tony who use to frequent the board. The first thing is he uses the Elder Impluse or Ray system with details on it being linked below as item 1). The second thing is he uses the MACD a good bit. Details on the MACD are linked below as item 2). And, the third thing, item 3), is charting of the S&P 500 Index set to the codes he suggested I use. Notice it has a near term price line set at 13 days, an intermediate price line set at 65 days, and a long term price line set at 200 days. In addition, the MACD is set to his suggested codes as well. You can use this charting with other etfs beside SPY. I use MDY for the midcaps and IJR for small caps. The charting should help you see that most of the noise that the news media writes about is reflected in the near term price line while the fundamentals are more reflected in the intermediate and long term price lines. The chart helps me tune out short term noise and look at the long term perspective. In addition, I use it to help me throttle my equity allocation along with my market barometer. More on the barometer will follow in another post.
1)
https://www.investopedia.com/articles/trading/03/022603.asp2)
https://www.investopedia.com/walkthrough/forex/intermediate/level4/macd.aspx3)
https://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p20424976418This leads back to the question I presented to the board a while back that drew some good discussion. Is investing a science or an art? From my perspective it is both as you have to take scientific data (the chart) disgest the data (the art) and make the call (the craft). I call this process Old_Skeet's Scientific Wild Ass Guess or SWAG.
Have a great weekend ... and, I wish all "Good Investing."
Old_Skeet
