A+ Stocks Indicator for World Markets

Our A+ Indicator is charted below. When the A+ Indicator goes below 55, it is time to sell. When the indicator passes up through 65, it is time to buy. Updated on 9/3/2010 (weekly).

Please choose a continent:    America Europe Asia        Please choose a country:    US US1989_1998 US1979_1988 US1969_1978 Canada Mexico Brazil

  

No one can timing market consistently, while many system trading on individual stocks are very successful. Why? Market does not provide enough data to study and to prove a person or a group's record. We need to wait thirty or forty years to see whether someone is accurate and consistent.

In order to have more reference data, we back tested on markets of past 40 years. With help of our friends overseas, we looked at the markets around the world. We believe we stumbled on something - an A+ long term market indicator.

We developed the indicator after early 2000 tech bubble. The purpose of the indicator is to forecast long term severe down turns. At early 2008, it yielded a selling signal. We watched the market with some curiosity. Market development in 2008 convinced us one more time that the indicator is meaningful.

First, we do believe there are signals before market melt down. The issue is how to pick up the signals. Just like before major earthquakes, underground movements do provide some signals.

For stock market, the underground movement is each stock. We asked ourselves, does the stock represent the value perceived by market analysts? How many stocks are trading at the normal valuation based on the its industry outlook and its future earning forecasts? We noticed that before every severe downturn, the individual stock price started to show weakness in some kind of formats. To use the same scale, international markets are indexed to the U.S. market.