Quote Originally Posted by eschroeter View Post
I took the IBD Market School class in Las Vegas a few weeks ago. I then learned (and have since joined) the EV site. Have you looked at how the Market School signals "reconcile" with the EV 20 DMF market signals? How do you use both schools of thought together?

Thanks

Emanuel Schroeter
Emanuel,
I am glad to have another MS trained person in our midst. Have you taken Level 4 also? I am in the middle of assembling a Market School Market Exposure Model and will have a tool to look at questions like this when complete. The model is not an easy undertaking but without it it would be difficult to conduct studies of how other indicators such as Money Flow would help or hinder. I also want to explore some market internal data for signals that would help or hinder.

I found the Market School Model beutifully simple and very O'Neilian. O'Neil always says to look at what the market is actually doing and forget opinions on what it ought to be doing. That is the focus of their model. Right now the market is rallying and leadership is acting well enough. What other information does one need? In fact I have not seen it easier to operate a CANSLIM portfolio in a long time. The indices may be choppy but the leading stocks are much steadier.

I have done some research on offensive sell signals such as the one that occured October 31,2007 when the NASDAQ went up higher (percent) than it had above the 50-day moving average in more than three years. It was a blow off top. The Market School Model had two buy signals that day. In reality I was 200% invested that day and decided it was a sell signal and sold part of my portfolio that day and began an orderly exit.

I think Money Flow could produce significant input to the model.