Real-time from BATS Exchange
always place Stop/Limit Orders when buying or selling. Not
all stop loss orders will be executed on the same day, some may even
survive the trend change during the turbulent ups and down
of the stock market.
VIX - Current Volatility
(Fear) Index - S&P 500
Buy Signal: The market-timing
strategy issues 2 buy signals. The first buy signal is
triggered by a potential uptrend RSI/MA crossover for funding
an underweight position.
The second buy signals is triggered by a
confirmed uptrend MACD/MA crossover to fund a
market-weight position. The overweight position stays in cash
most of the time and can be used as needed.
Sell (Neutral) Signal:
The market-timing strategy issues 2 sell signals. In addition,
the risk management table provides stop loss exit values,
which should be placed at all times. The first sell signal is
triggered by a potential downtrend RSI/SMA crossover
for market-weight and overweight positions. If the positions
have not stopped out, it should be sold at this time. The
second sell signal is triggered by a confirmed downtrend
MACD/MA crossover for an underweight position. At this time all
long positions should be sold if they have not stopped out.
funding: Each portfolio is equally divided into 3
sections. Namely, underweight, market-weight and overweight.
It is best to analyze and update the Stock Market Timing
result after the market closes, especially when the market
exhibits turbulent ups and downs. A signal is triggered by
RSI|MA and MACD|MA crossovers. This investing approach
limits risk and preserves profits.
Market-Timing Components: My stock market timing signal
strategy is simple and consists of 4 indicators. Namely,
Total Stock Market + Fibonacci Retracement + MACD|MA +
- Vanguard Total Stock Market ETF (VTI) seeks
to track the performance of a benchmark index that measures the
investment return of the overall stock market and includes large-,
mid-, and small-cap equity diversified across growth and value
- Fibonacci Retracement to call
support and resistance level.
- Moving Average
Convergence-Divergence (MACD) | Moving Average
crossover to call confirmed buy and sell signals.
- Wilder's Relative Strengths Index (RSI)
| Moving Average crossover to call potential up or
down trends, plus overbought and oversold market conditions.
Funding the Portfolio
and Portfolio Risk Management
click for details