Hey folk
Time to book profit for equity market.
I have existed my position in the market.
In the previous post, i do have a few forward indicators
1) Seasonal: it is a tabulation of years of data for the month of Jan, Feb, Mar and so on and measure the percentage return permonth. Then average them out. This will give you a graph that shows the movement since history, which month do better.
2) Bonds and stock yield relationship: Bonds yield play a vital role with the relationship of the stocks. Use stock yield per week minus the bonds yield per week. Taking a difference of them in terms of 5 weeks, you can roughly gauge the future movement. This is available on barrons website http://online.barrons.com/public/page/9_0210-weeklybondstats.html
3) Bonds price move first then stocks: Bonds will always move first then stocks. Is when investors exit their position in bonds where they will enter into stocks. Usually bonds price movement is 5 mth in advance.
4) The commitment of traders report publish by the CFTC weekly: This tell us the positions the big boys take per week. So an increase in position on the long side mean they are buying up. This is available on CFTC website http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm
Note that these are not timing indicators. These are more to confirm the direction of a trend or filter false breakout. For entry technique, you still need to use the W%, price action etc. But these can help you reduce the loses and mistake.
