Tuesday, September 13, 2022

Accidental discovery

Accidental Discovery

 

Corona Del Mar, CA

 

Hey ,

 

I've been debunking sentiment and CBOE put/call data lately.

 

...I have to call out bullshit because good, honest folks like yourself have your money on the line.

 

...but I'm a positive person, so let's discuss something awesome that came out of the sentiment & put/call testing.

 

I ran The Boss SuperAi about a dozen times, and price strategies beat them at every turn.

 

What I didn't mention was an accidental discovery that uses two brilliant concepts to earn a 20% annual growth rate and 72% win rate (which would beat 99% of fund managers).

 

Not as good as the 160%, 250%, and even 330% annual gains my students are building with The Boss and our True Asset Pricing data, but not bad for a good 'ol price-based strategy.

First of all, when I saw the cyber code generated by The Boss, I had a good laugh.

 

Why? Because it uses two moving averages like the MACD indicator does...

 

...only it buys the "sell" signals, and sells the "buy" signals -- completely the opposite of what they teach in TA books!

 

I discovered the same thing in the early 2000's. That's when I realized the books were all wrong.

What happens next is amazing.

 

As price climbs higher, the price from a few months ago is used as the stop.

 

That way plenty of room is given for the S&P 500 to trend.

 

All this is contained in seven lines of C code.

 

You may be wondering..."what's it saying now?"

 

Good question!

 

It's on a "buy" signal for the S&P 500 (SPY).

 

When trading the S&P 500, the win rate jumps up to 78%.

 

Pretty interesting how that's lining up with my "once in a decade" buy signal I've been talking about.

 

A quick recap on that:

 

- Wrong-way S&P 500 futures traders are short billions according to the COT reports

 

- Sentiment was the lowest since 1990 (although I think I've clearly debunked AAII sentiment having any predictive power, but I thought I'd list it here for consistency)

 

- The best time to buy stocks is typically when they announce a recession (after 6 months of declining GDP)

 

- Globalist think tanks like McKinsey are talking about spending $275 trillion to combat "global warming" which will kick the can down the road on debt.

 

- A series of 90% up volume days on the NYSE, which is typical of what you'd see at a bottom.

 

So far, so good!

 

P.S. We all know market makers make billions in profits and are extremely consistent. In fact, Virtu had an over 1000-day win streak.

 

Want to learn how to trade like 'em? Now is the time.

 

Download the guide >>

 

 

 

 

 

 

Trade smart,

 

Dan "Prince of Proof" Murphy

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Boss, Inc.

260 Newport Center Dr, Suite 100 Newport Beach, CA 92660

 

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