Indexing Strategy using MarketBOB: Low risk

Stock Trading using MarketBOB:

Lateral Investing using MarketBOB

MarketBOB signals BULL and BEAR trends every week so you can:

• buy and sell indexes every week.  The ETF Dow Industrial Average (ticker symbol - DIA) is the simplest way to buy and sell, using a discount broker.  You buy, sell or hold at the open on Mondays based on MarketBOB.

• make buy/sell decisions for individual stocks or rebalancing your portfolio.  When should you be aggressive?  When should you be cautious? 

• give you a leg up on investor confidence and momentum in the market.  Perhaps you do not want to jump in and out all the time, but move on the larger trends that MarketBOB provides.

There are moments when breakout movies signal a change in market psychology, something unexpected like the success of The Passion of the Christ in 2004 which dropped the DOW into negative territory in late February. It did not break out solidly to the positive again until the end of October, 2004.

Which way to go?

Use MarketBOB to:

• buy and sell in bull and bear weeks

• to be more or less aggressive with your own stock picks.

The ability to time the ups and downs of the financial markets is an impossibility.  Over the years, some "gurus" have been correct once in a while, but never consistently and for a long period of time. 

If you're out there all by yourself, there will be no one around to sell your stock to, at any price.

MarketBOB keeps you in sync with investor confidence in the predictability of the future and:

• increases your odds of buying into strength and selling on weakness. 

• keeping you firmly in the center of the herd, moving in the direction of the crowds. 

MarketBOB is a risk management tool to reduce your exposure yet catch the upswings in market sentiment.  There are two 60% rules MarketBOB has followed consistently over the years:

• Call the market direction correctly 60% of the time

• Only put cash in the market 60% of the time to reduce risk

Many experts promote strategies aimed to beat the market by evaluating past performance and projecting future probabilities. 

 MarketBOB can be used to chose between various strategies used by the investing herds. 

This is lateral investing.

These strategies can be grouped into generic headings:

• buy and hold (index or stocks)

• technical analysis (chart patterns)

• fundamental (value/growth) analysis

• momentum (trends and volumes)

• contrarian (against the herd)

• managed (paying someone else)

• diversification (different asset classes by %)

If there is one truism of the markets, it is that what worked once, will not work all the time.  Value investments have their day, growth stocks work some times and even gold, commodities and international stocks shine.  But not all at once and not all the time.

You have to move LATERALLY between strategies as the market psychology changes.  MarketBOB can provide guidance on lateral investing to ride the most appropriate strategy for today's market.