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Reader Question

Posted on July 01, 2008

A reader asked for a recap of how I use the 200 DMA in deciding on defense and offense.The big macro is that demand for equities is either healthy or it is unhealthy. If it is healthy you should be in. If it is unhealthy you should be out. In practical terms 100% in or 100% out does not work, the real world application is that you focus on growing the account when demand for equities is healthy and you focus on protecting assets when demand is unhealthy.There are multiple ways to gage health of demand and while they might have slightly different trigger points they are close enough to each oth...

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bear market , housing , inflation , interest rates , sp , yield curve