Fascinating chart via Jack Ablin of BMO:
I would modify Jack’s rule: In a bear market sell off, you want to buy for the trade in the 15-20% zone, not 5%.
I haven’t backtested the reverse, but I would guess thats true too — selling into a 20% pop over the 200 day moving average in Bull markets.
Playing a Sideways Market
BMO, October 31, 2008
U.S. Portfolio Strategy
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.