DJIA MARKET TIMING

INTRODUCTION

In reference to signals, the rules are actually very simple, although there
is an unique algorithm behind the simple visual appearance. Blue color
candlesticks denote longer term bull market, whereas red color candlesticks
denote longer term bear market. The primary rule is to enter long positions only
when the market is bullish, i.e. blue color candlestick. The opposite is true
for short positions, go short when candlesticks are red in color. The long
signal is triggered when oscillator on the chart crosses above 0 line. The short
signal is triggered when oscillator crosses below 0 line. Exit signal for long
trade is triggered when oscillator crosses below 0 line. Opposite is true for
the exit signal on short trade.

I use signals to trade DIA or SPY symbols. You can even double up and trade the signals with ProShares ETFs . Another instrument I use to trade these signals are stock options. I buy DIA call options when system generates a buy signal and buy DIA put options for short signals. Lastly, I use this system as a general market timing tool for managing my stock portfolio.

DJIA Market Timing (12.31.2008 - TODAY)

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SIGNAL RESULTS:

12/15/2008 LONG@ 8,628.81 01/12/2009 EXIT@ 8,599.26 -29.55 pts.
01/12/2009 SHORT@ 8,599.26 03/27/2009 EXIT@ 7,922.57 +676.69 pts.

DJIA Market Timing (12.31.2007 - 12.31.2008)

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SIGNAL RESULTS:

01/11/2008 SHORT@ 12,850.74 02/21/2008 EXIT@ 12,426.85 +423.89 pts.
03/27/2008 SHORT@ 12,421.88 04/07/2008 EXIT@ 12,612.59 -190.71 pts.
05/06/2008 SHORT@ 12,968.89 12/15/2008 EXIT@ 8,628.81 +4,340.08 pts.

DJIA Market Timing (12.31.2006 - 12.31.2007)

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SIGNAL RESULTS:

04/03/2007 LONG@ 12,431.28 08/14/2007 EXIT@ 13.235.72 +804.44 pts.
08/27/2007 LONG@ 13,377.16 10/31/2007 EXIT@ 13.792.06 +414.90 pts.
10/31/2007 SHORT@ 13,792.06 11/30/2007 EXIT@ 13.314.25 +477.81 pts.