All Ords Index.

[ratkin]

.

Dead right! I would have been saying that it was a bad call and that the AllOrds was always the best index to apply to the Aus market. I would be saying that this was evidence that the US indices demonstrably did NOT lead the way for the Aus market and that the 2 markets were essentially unrelated.
But that is not what happened is it?
.

Cute as usual , its easy to always be right after the event
, one way of never being wrong.

Fact is your system wasnt linked to the s and p 500 it was purely based on the ASX chart, which has only just given a buy signal.
That being the case why not just post that chart by itself , rather than hinting that it was obvious 19 days ago that it was going to go green because the american chart did.
Like i said before, just more smoke and mirrors.

[STRAT]

hinting that it was obvious 19 days ago .

Ratkin are you in need of new glasses or just deliberately being obtuse

[ratkin]

You lot should form your own sect , with Mr P as guru.

[STRAT]

You lot should form your own sect , with Mr P as guru.

lol, Now thats just childish.

[fihr]

It's wise to take other market indices into account when establishing risk parameters for trading. No one would disagree with that. Also, Phaedrus is a pretty good guru, which just means teacher, as opposed to God. I'm now using his graphs as another layer in my trading plan. Thanks Phaedrus!

[ratkin]

I was on my second bottle of wine when i made the sect comment so i wouldnt over analyse it too much.


Now im sober there is one comment made my Mr P that suprises me . He has spent many months telling people not to buy stocks in a downtrending market. His system is very clear on this.
However , he appears to now be saying it was ok for people to start buying stocks 19 days ago in a downtrading index , simply because another index \went green. The logic being that , that index usually predicted what his system index was going to do.

By this logic its ok to buy stocks during a crash on the ground that history shows that markets eventually recover.

In future then we wont see Mr P critisising people for buying stocks during a market correction? Because after all they are only using their initiative and using their own logic .and buying into a market that backtesting shows will recover

[Jess9]

Hi Ratkin. More experienced posters than my self have noted that the MSIs (multi markets) are ONLY intended as high level sentiment guide. Do what you will with them as P says. That said, I had previously noted Strats strong correlation graph between ASX and key American indices (a few pages back on the bear thread) which confirmed what I suspected from past observations. When I saw P's graph last week, I therefore chose to accept the risk of "jumping the gun" re ASX entry. I did so in full awareness of market sentiment and risk etc (because of P's MSIs). My decision to enter met my tolerance for risk (each individual is obviously different). After I entered I was watching (and still watch) markets very very closely and would (will) have sold all in a flash had circumstances changed negatively, a move back to red etc. My ASX stocks have good liquidity so exit is no problem.

The MSI to me shows safer times to be in. Thats all. It won't prevent buying a "dud" stock. Lets not confuse the MSI with other stock specific TA tools. Thats another game entirely ; )

Thanks Phaedrus, and to all other posters who contribute with good points and questions to this thread. Keep posting. Our TA collective and personal discipline will improve : )

This site is a great platform for learning in a fun and entertaining way.


Cheers Sharetrader fam!

[CJ]

He has spent many months telling people not to buy stocks in a downtrending market. His system is very clear on this.
However , he appears to now be saying it was ok for people to start buying stocks 19 days ago in a downtrading index , simply because another index \went green. The logic being that , that index usually predicted what his system index was going to do.

My take on what I have read is that P is sticking to his strategy. He is just saying that someone else's strategy worked very well in this situation. I think he has also pointed out that it doesn't always work which is why he is not adopting it.

[percy]

My take on what I have read is that P is sticking to his strategy. He is just saying that someone else's strategy worked very well in this situation. I think he has also pointed out that it doesn't always work which is why he is not adopting it.

My thoughts exactly CJ.As I have stated a number of times I find Phaedrus's charts most helpful and his comments words of wisdom.His advice is both saving me money and making me money!!!

[tricha]

My thoughts exactly CJ.As I have stated a number of times I find Phaedrus's charts most helpful and his comments words of wisdom.His advice is both saving me money and making me money!!!

WELL, WELL. WELL what do I make of this.

The market fell nearly 250 points and we decided to hit the panic button.

Aim to be totally out of the market.

And the market fell another 250 points.

But the market have now gone up 250 + points and no green line.

They do not call this the scary market for nothing


Originally Posted by Phaedrus
Alas, alack - this statement is no longer true.

Today's drop did take us into new territory, specifically :-

(1) The MSI turned Red.
(2) The SMA88 was broken.
(3) The trendline was broken.
(4) The Stochastic oscillator (80) turned negative.



I find it immensely encouraging that my "automatic" Market Strength Indicator fired simultaneously with other indicators that had been specifically tailored to this uptrend. I hope that you, too, also find some comfort in this!