Swim With the Current - like in football
...Offense? Defense? Huh?
When were on offense, we run offensive plays from our playbook. Meaning, well look to put money into the market to build our wealth. Were not going to buy everything in sight; we want to focus ONLY on the sectors that are also on offense.
When were on defense, well run plays designed to protect our assets. Defense doesnt mean run out and sell everything! Whats the goal when the defense comes on the field in a football game?
To prevent the other team (the market) from scoring against you!
When the market is on defense, well only call plays from our defensive playbook. Running a defensive strategy helps prevent us from making really stupid mistakes in our account and taking big losses. Defense can mean taking steps like buying protective puts against your holdings. Or possibly shave back a large investment in a stock or mutual fund.
Avoiding big losses alone will improve the performance for most people in the market.
How do we know whether to be on offense or defense? We use a tool that is an excellent indicator of the level of risk in the market. Fifty years ago, a technical analyst named A.W. Cohen came up with this tool he dubbed the bullish percent index. Cohen was looking for a way to tell when to be cautious near market tops and also aggressively optimistic near market bottoms.
If you think about it, isnt that what we all want? Something thatll tell us when the risk in the market is high...and when the risk in the market (or a sector) is low! And its been around for fifty years, ignored by many in the market!
The bullish percent index is the percentage of all the stocks in a universe that are currently on buy signals. Now, that universe may be all the stocks in the semiconductor or the financial sector. Or even all the stocks listed on the New York Stock Exchange.
Knowing when the risk is high in a particular area will go a long way toward improving your investment results!
When to take action
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Soccer Team Positions and Strategies With 3-5-2 Set Up
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Soccer Betting - An Introduction
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Advantages over other sports
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Premiership Betting Review - 5 February 2006
...xing Day and will have had plenty of support at 11/10 against bottom-three Birmingham. A debut goal for Emmanuel Adebayor and Henrys landmark strike was enough to keep Arsenal in fifth place.
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West Bromwich Albion did their relegation battle the power of good with a convincing 2-0 victory over Blackburn Rovers at T...more
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