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A simple methodology using the market conditions provided by the Big Picture to time leveraged ETF buys. Buy when the market changes from correction to rally, and be cautious when it shifts from rally to under pressure. Sell when the market moves from under pressure to correction. Note: this strategy requires a long uptrend.
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Daily the Big Picture gives us the market condition in one of three possible states
Daily the Big Picture gives us the market condition • Market in Confirmed Rally • The Good
Daily the Big Picture gives us the market condition • Market in Confirmed Rally • The Good • Market Uptrend Under Pressure • The Bad
Daily the Big Picture gives us the market condition • Market in Confirmed Rally • The Good • Market Uptrend Under Pressure • The Bad • Market in Correction • And the Ugly
When market changes from correction to rally • Buy your favorite leveraged ETF • One that is indexed to the broad market • Or more conservatively • Simply choose a standard ETF
When market changes from Rally to Under Pressure • Be very dilligent • Remember you are dealing with lots of leverage • 2X or 3X funds move quickly • Set trailing stops or other downside protection
So how well does this strategy work? • Note Well: it is a home run hitting strategy • You need the market to run a relative long uptrend • And here are some results: