Investors Business Daily Confirmation

Todays IBD says that yesterday was a confirmation day and the market is in a confirmed rally. Is Charles still posting here? If so and he reads this what does he think of this. Or what does anyone else think. toni

Todays IBD says that yesterday was a confirmation day and the market is in a confirmed rally. Is Charles still posting here? If so and he reads this what does he think of this. Or what does anyone else think.
toni

It has worked very well over time- though "false positives", while very infrequent, have occured occasionally. The confirmation was generated by a second volume-expanding big (1-2%) up day, 4 to 7 days after the first day on of that same description.

As a side note, my seven sentinels are confirming same thing.....D

Edited by IYB, 21 March 2008 - 01:57 PM.

Marty Zweig "double nine-to-one" signal on Tuesday.

Toni, Yes, IBD's Big Picture did call yesterday a confirmation of the attempted rally. Thus by their reckoning the stock market is now in a confirmed rally. It also said don't rush into the market with all of your capital now. If the "confirmation" holds" other leading stocks(as their 100, for example) will start breaking out of bases in the next week or 10 days. Then you can have more confidence that the confirmation will take. Since the top in the market last October their have been 3 rally's confirmed, but none took. All were later sold at small losses after the failure's showed by failure of breahouts and distribution days. I went into all three as I will this one Monday with 1/2 positions. The other half will be placed after breakouts of leading stocks and lack of many distribution days in the next weeks. This system worked well for me for years, but it has hit a weak period since last October. As I also said above it does keep your losses small. And when it works lets your profits run. I never make recommendations, or say we are in a bull or bear market, but we are in an extra risky market now. Remember Warren Buffetts 2 first rules of investing. Rule # 1: don't lose money. Rule # 2: never forget rule # 1. If you trade, trade with care. Charles

spx 1576-1256/1576=-20%

Tuffy - sounds good - thanks.

Todays IBD says that yesterday was a confirmation day and the market is in a confirmed rally. Is Charles still posting here? If so and he reads this what does he think of this. Or what does anyone else think.
toni

It has worked very well over time- though "false positives", while very infrequent, have occured occasionally. The confirmation was generated by a second volume-expanding big (1-2%) up day, 4 to 7 days after the first day on of that same description.

As a side note, my seven sentinels are confirming same thing.....D

Hi IYB, I've been reading your seven sentinels posts with great interest. Sometime along the way, you mentioned the addition of a couple of "close" signals - to close out existing longs (from a prior buy signal) and to close out shorts (from a prior sell). These were supposed to be early warning things instead of waiting for a subsequent sell/buy. However, I couldn't find your rules for when these early signals were triggered. Could you elaborate?

Thanks much!

Charles, Thanks. Sounds like good advice. IYB, Where can I find what youe 7 signals say on an ongoing basis? toni

IYB, Where can I find what youe 7 signals say on an ongoing basis?

Seven Sentinels

While IBD's stuff can put you into a trend, some say its a coin toss.