Keep your CANSLIM posts coming, they are very valuable.
I have been following VIT’s Pascal, Bob & Billy posts for two years, the Robots (IWM & GDX) and Billy’s robot posts since May, IBD The Big Picture all of 2011 and your CANSLIM posts since the new VIT web site. A lot off complementing ideas and approaches. Very enlightening!
Since your post, following your Vegas seminar, I have tried to understand this new market timing approach. I put together an excel spreadsheet to combine this new market timing approach with other approaches to get a combined picture. A copy is attached.
October has been a very interesting month for market timing as shown when you put all this together.
Regarding your new approach it raises a number of questions:
1. The IBD Market Pulse Distribution Days and yours don’t match, why? IBDs are in red, yours are in black and when both matched they are in blue. I am still struggling with the definition of a DD, can you please explain? Could you please define what make an IBD DD?
2. I am also wrestling with FTD. Could you please provide your definition? Here is the IBD definition: Follow-Through Day Concept
System developed by William J. O'Neil to identify an important change in general market direction from a definite downtrend to a new uptrend. From the beginning of any attempted rally during a definite downtrend, a 'follow-through' day is identified when the index closes up 1.7% or more for the day on a significant increase in volume from the day before. The first two or three days of a rally are normally disregarded as it has not yet proven it will succeed and 'follow-through' with power and conviction. 'Follow-through' days therefore generally occur the fourth through seventh day of the attempted rally. They serve as a confirmation that the market has really changed direction and is in a new uptrend.
3. On October 18, you have indicated a “Force 5”, what is a Force 5?
I have gone through your course material, the “ How to make Money in Stocks” book and search the IBD site for Distribution Day with little results. Yet, these concepts are the foundation of the IBD Market Timing.
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