Quote Originally Posted by srevansjr View Post
How does Jerry select his Leaders Index? How often does he change the individual stocks? Thanks SR
Jerry is out of the area for the next few days. The leaders index is created after a market rally gets underway. The current rally started with a follow-through day on December 20. He screens for stocks with very good fundamentals and are technical leaders in the rally. He chooses them in a way to not allow more than 2 stocks from the same industry group to be a member of the index. He chooses something like 20-25 stocks in total. He then uses the program HGS (High Growth Stock Investor) to track that list of stocks as an index of equaly weighted stocks. By equally weighted I mean as if the same dollar value was invested in each equity.

The index is then monitored daily for signs of a weakening market. Dropping below a 17-day simple moving average for example would be an early sign. Failing the 50-day is usually the end.