The small cap started the year extremely strong with the Russell 2000 up 8.7% YTD compared to S&P 500 which is virtually flat. Below is a long-term trend chart of an indicator we developed call the Market Ratio. Continue reading
The small caps, Russell 2000, had a great week which led us to revisit the model we developed call the Market Ratio. Below is a long-term trend chart of this ratio. Continue reading
The market had one of the largest daily gain since 2020 today with the S&P rising 5.5% and the Nasdaq jumping 7.3%. Such action pushed S&P 500 above the most recent high of 3,900 in late October. Below is the current view of our Dow Theory Indicator and NLO Market Score ®. Continue reading
The market fell another 5.8% this past week and has lost over 9% in a month. Continue reading
It was a volatile week for the market. Despite 3 major indexes (S&P 500, DJI, JIT) reaching all-time high and confirming Dow Theory bull market. There are some sign to keep a look out for. Below is the market indicator at the end of last week. Continue reading
Posted in Market Ratio, NLO Market Indicator, NLO Market Score, Uncategorized
Tagged members
Since our last posting on the Market Ratio on August 13, 2020, the Dow Jones Industrial Average has increased approximately +7.40%.
However, this wasn’t the payoff based on our work of August 13, 2020. As seen below, the payoff has been a gain of nearly 3x what the DJIA had achieved in the same period. Continue reading
In doing some research, we came across a ratio that we thought was very interesting. For now, we’ll call it the Market Ratio. For us, the Market Ratio says everything that encompasses the goal of generating returns that are beyond that of the S&P 500 Index. The Market Ratio is charted below from September 10, 1987 to August 7, 2020.
As seen below, the compounded annual growth rate generated by using the Market Ratio over the entire period in question is +14.28% for the LEADER strategy versus using the LAGGARD strategy at +1.66% and compared to the S&P 500 index compounded annual growth rate of 10.63%.
Below we detail the specifics which, on paper, seem to generate these exceptional returns. Continue reading