FEBRUARY 15, 2008
Note. The short-term trend line (brown) looks like it makes a lot of false starts, down one week, up the next. Consider its track is a seismograph. It is constantly probing the 'ground' beneath the market to see if an earthquake is at hand. If not, it rebounds promptly as the market continues its laudable march to the northeast.
At least that is what it is designed to do. As you know, the history of these ETFs is too short to define their behavior during a major bear market of protracted duration.
The short-term trend is built into the system and underlies all visual and tabular performance results. It is either up or down, and fast.
The long-term-trend measure (blue line), when below 10, overrides the short-term trend. When that happens go to cash or, preferably, sell short the two bottom-ranked funds. See Rules.
In the meantime, it may have enough additional value for you to pay some attention to though it lies outside the formal rules for the use of the system. It does for me, anyway.
See th Long-term chart link below.
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Long-term chart here
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