Bungee markets…


The markets now are like the carona virus  pandemic: nobody knows what infects them and what to do about it.  Our analyses may be of some effectiveness here–just as an experienced doctor sees things the uneducated do not.  Thus we have fit a market break model to the bizarre events of the last several weeks.

Longtime readers will recognize the alphabetazeta analysis which could serve to tell us when to buy.  The trend model has already served us by identifying the events as a major trend break with the long term trend stop violated.  Now we are looking at the market as an alphabeta… situation.  We have drawn a downward slanting trendline which in ordinary circumstances would be the zeta line acting as a signal line when penetrated.

At present our position is so small that we are quite comfortable sitting on the sidelines–and waiting for the market to sort itself out.  Adventuresome trading here is more likely to see eratic equity than profits.

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