3/14/2012

If your 401K is under performing the market



Markets tend to move in the direction of breadth thrusts. This you can see for yourself on both longer term and shorter term. 

In the last 5 days there were 4.44 breakouts to the upside compared to 1 to downside. That indicates a build up of  buying pressure.  Breadth thrusts happening after a negative breadth thrust in last few weeks are good sign. 

For over 100 years market participants have studied market breadth. Hundreds of breadth tools have been developed over the years. Market breadth remains one of the best tool for market timing. They offer you objective data on underlying buy and sell pressure in the market.

Breadth based timing models are especially useful for longer term trading decisions. If you have a 401K and interested in making good returns in it then you should study market breadth based models for timing your purchases. Breadth based models can help you avoid the bear markets and get you in to market right at the beginning of bull moves. 

At the beginning of a bull market there is a breadth flip. Breadth flips from extremely negative readings to extremely positive readings . The market had such breadth flip on 3rd October and that is when the Stockbee Lemonade Strategy for 401k went bullish and got invested and has remained invested since then. 

If your 401K is under performing the market , you might benefit by studying and developing breadth based timing tools. The results might surprise you......

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