Originally Posted by
mscott
Stephen,
There is no published source for the CANSLIM Market School Exposure Model. The only way to get full exposure is to attend Market School training offered by Investors Business Daily. The Market School is highly recommended. If you go back to around October 24 and later last year you should find a thread I started about the Market School model where I describe each buy and sell rule and the general approach the model uses. I describe it well enough to follow what I am saying in later messages when I say we got a B7 Accumulation Day signal for example. There are 10 market buy signals and 12 market sell signals. When the buy switch goes on with a B1 buy signal, each buy and sell signals are accumulated (summed, sell signals are minus 1 signals) to produce an exposure count from usually from 0 to +5. The exposure levels are then: 0 = cash, 1 = 30%, 2 = 55%, 3 = 75%, 4 = 90%, 5 = 100%. Sometimes (like now) the exposure count is allowed to accumulate to +7 as we are in what we call a Power Trend. Power Trends are exceptionally powerful uptrends. Essentially the model looks at price and volume of the NASDAQ and the 50-day simple and 21-day exponential moving averages. The exposure count increases as the evidence of a sound rally builds up. The exposure reduces when evidence of topping or corrective action happens. We just increased from a +3 to a +4exposure level today. The market went into a confirmed rally on December 20 last year and we have been long in the market ever since, most of the time spent at full (100%) exposure.
I go to the HGSI Saturday meetings that happen once per month in Palos Verdes. There will be one this comming Saturday from 1-5PM.
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