The indicator (more info here) has turned yellow. Does this mean pour all your money into equities? Not at all. If the indicator stays above the 75 level for ten days, it turns green. THEN you invest everything you’ve got.
Mmm, perhaps not. It’s just an indicator. Use at your own risk.
Which color do you like better? Green or brown? I’m partial to the green curve myself. That green curve comes from writing puts…sort of. Writing puts can be a lower volatility play that makes you money in choppy or flat markets, falls more softly in down markets, and seriously under-performs when the market goes on a tear upward.
Continue reading Writing Puts, Or Just Pretending To.
Happy new year! It’s that time again, when everyone with a blog does a wrap up of the previous year. Here’s my look-back.
Many of you follow along with the “+/-30% per quarter wider-market breadth indicator”. Which is too much of a mouthful, so I’ve humbly named it after myself instead. I wanted to provide an update since I’ve been tracking it for awhile.
Continue reading “Matt’s Breadth Indicator” Update
Happy New Year, one day early. Here’s wishing 2017 is successful for you in whichever way you define success.
Aren’t calendars wonderful? A couple of days ago, up pops a reminder on my calendar to revisit a post I did a year ago. At the very beginning of 2016, I wrote a post on whether yearly performance was mean-reverting, and found some interesting things. You might want to go back and take a look first, before you continue reading here.
Continue reading Divide By 20: One Year later
Earlier this year I posted a link to the indicator data, so you can see for yourself. As per recent request, I’ve updated the data in the Google Sheets document. Here’s a link.