Re: U of Michigan study on Market Timing.

["'Lucky Bastard'" <hadrada@xxxxxxxxxxx>]

: The attached figure shows the result of sorting the 7902 days such
: that the biggest gains occur first and the biggest losses occur last.
: The reinvested profits build up to $1,894,433,971,569,410 then
: decrease back to $11,839.
:
: Conclusion: Market timing is incredibly effective but hard to do
: without a good trading system...

Thanks, Bob.

Regarding simple market timing. Marty Zweig used to recommend exiting a long
position and go into cash if the Value Line Index (either Arithmetic or
Geometric, I can't remember which) closes down more than 4% from its
previous week close. And enter when it rises more than 4% from the previous
week's close. Simple, but effective.

--
"I find your lack of faith disturbing."
Darth Vader