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Q & A
Q. What do I get when I subscribe?
A. You get full access to the website and a weekly update which provides precise instructions whether to go Long, Short or remain in cash.
Q. Is the Composite Technical Score (CTS) a trend following indicator?
A. No. Although the CTS takes trend factors into account, it is not just a trend following
indicator like you might see on the BarChart or VectorVest websites. We also take into account
breadth, sentiment and intermarket spreads. We then apply stochastics to these indicators as
well as the market indices to tell us whether the market is
overextended and the extent to which the smart money is in agreement with the trend.
Q. Are you against trend following systems?
A. Yes and No. Trend following works very well when the market is trending, but it doesn't
do well when the market is locked in a trading range and can have even more serious failures
when there is a rapid
reversal. For this reason our CTS is designed to respect the trend, but also to signal danger
when the market looks overextended and/or the smart money is lining up heavily on the opposite
side of the market. We also have a neutral designation which allows the investor to go to cash/ US
bonds when the market direction is ambiguous.
Q. Does market timing really work?
A. Yes. There are objective, identifiable factors which correlate with future stock price. It
isn't rocket science, it's a matter of putting together the truly effective indicators
and following what they say even if you don't necessarily agree. Our CTSS system does all of this
automatically. It is virtually impossible to ignore countervailing evidence or to taint
the results due to some preconception.
It is simple to follow and completely
free of subjective bias.
Q. If market timing really works, why does everyone say it doesn't?
There are three main reasons for this.
(1) The mainstream investment media have a bullish orientation because they normally
receive advertising revenue from mutual fund companies, brokerage firms or other financial
service companies which make money from keeping you in the market.
(2) At or near market tops, buy-and-hold always looks the most attractive. This is because
looking backward from any peak will always show the best "long term" performance for that market. Even
good market timing will have difficulty beating buy-and-hold at that time.
(3) Opponents of market timing cite averages rather than the standouts. Obviously if one
uses the average market timers as a basis for comparison the results won't be particularly good. This is
like saying: "Because most books submitted to a publishing house are poorly written
you shouldn't bother reading books" In fact we know by definition most people - including
ostensible market timers - who attempt to beat the market will fail, just as most people
who submit documents to publishing houses will be turned down. However the top market timers
really can bolster your performance, and keep you out of the market (or short) when the market
heads south.
Q. Is there a place to find a stock symbol quickly?
A. Yes, many people are frustrated with the slow speed of the large financial websites when it comes to performing a simple stock symbol search. I recommend the www.tickerfind.com website. You can find a ticker symbol there much more quickly than in the larger sites.
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