About 6 months ago I created a software program that analyzed the market. Nothing out there seemed to work for me to get an “edge”. Plus, I got tired of drawing a bunch of graphs and charts and dropping in moving averages, trend lines, etc. I wanted to see the market on my whole screen in a snapshot form. So, I created it. On my endeavour, I also created a proprietary algorithm to analyze the entire market to identify bottoms. Tradeable bottoms. Let me first say that it doesn’t identify “permanent” bottoms. No one can ever know that without foresight…and none of us have that ability. What it does do is identify tradeable market bottoms.
In fact, the algorithm only produces a tradeable bottom about twice in a decade. In fact, even after all of these declines, the last three before this were January 22, 2008, July 22-23, 2002, April 14, 2000. Well, we had one yesterday, October 6, 2008. We had a very big one.
I have been encouraged to update my blog to keep a record. I will also update sectors and what I am seeing on a purely technical level in the market.
Filed under: The Market
