I have been working in the background on a smoothed I1 which filters out the short-term moves, isolates major highs/lows, and simplifies the rules for longer-term traders. When I1 indicates a future trend I like to split my positions in 50% short-term and 50% longer-term (3 to 9 months). I am creating a new page containing the smoothed I1 and it's rule set. It is in the Pages list as Longer-Term I1 Signals. The long-term forecast in the 2010 Forecast is still valid. Starting in May, 2010 a 5-year period of sub-par I1 values will usher in an extended bear market.
The current view of the smoothed I1:
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