Friday, March 10, 2006

Bullish Percentage

Yeah, I am getting bashed in the markets, giving up profits I made earlier this and last month, though as only a fraction of my net worth is in trading and most is in fairly conservative at the moment long-term investments the overall damage is not too severe.

Another interesting indicator I follow is the Bullish Percentage. This one is for the NASDAQ 100 index. It tracks what percentage of the point and figure charts of the stocks in the index in the question currently yield bullish recommendations. It is read in a contrarian fashion. When most charts look bullish according to the P&F methodology the market is overbought and will fall. This shows that P&F is mostly not a very useful methodology except used very carefully and differently, for example, in this way...

Another investment book arrived yesterday from Amazon. This one is by Mark Tier. Glanced through - a little "self helpy" but pretty useful I think. More later on this when I have read it. First need to read more of Easterling which I have started.


StealthBucks said...

Thought I'd get back to our last conversation. I watched your little Boulder closed fund. It went down a bit while many other more actively traded funds eeked out some discount reduction. I'd take a look at NAI or FFA if they dip especially, if you're a bit twisted on the market. My cost on FFA is $18.04 and I predict a little more discount shrinkage through May. Be wary of the dividend announcement though. Of course these guys are designed for income and have no leverage and by their nature won't get the upside of the market should we trend up like you predict, but at least you get paid. Also, sincerely good luck on the job/career hunt. Environmental Investing or "Socially responsible Investing" is a growth field.

mOOm said...

Will check those funds out you mention. Thanks. I don't have any US closed end funds at the moment. I just bought Berkshire B which while an insurance conglomerate has some of thsoe characteristics. Am really looking for what are effectively hedge or private equity funds that are listed on the stockmarket. When I get ready to buy will post my ideas.

My game plan is once I pile up enough net worth I will just gradually morph into a professional trader. My skills as shown by alpha on the blog are improving so far. My girlfriend and hoped to be wife is just starting out on her career - working on her PhD at the moment. She is 11 years younger than me. She won't likely be able to get a job here and in the last 5 years of job hunts the only offer I came up with was the job I have now. Good job but location not so great... (cheap at least! :) )So my plan is to give her a shot at a career and follow her. We will see what happens.