Trend-Following Philosophy

January 22, 2010
Systematic trend follower, Thomas Stidsman, explains his trading philosophy in a recent interview with Currency Trader Magazine:
I am, and have always been, a technical trend follower. Even though I have a degree in macro economics, I don’t care why the markets do what they do—I don’t care about any fundamentals, and I don’t forecast in any way.
I read daily briefs from a couple of forecasting analysts—one a fundamentalist, the other is into Elliot Wave and Fibonacci. I think it’s both funny and pathetic how they alter their opinions almost on a daily basis, mixing time frames and reasons, sometimes even without regard to what they wrote yesterday.
I read them, anyway, so I can keep up my end of a market discussion, as I have noticed people almost get offended if they ask me about the markets and I give them the true answer, which would be, “I have no clue.” So in short, my philosophy is to just follow the damn trends.

Via Michael Covel


Sector and Capitalization Performance

January 22, 2010

The chart below shows performance of US sectors and capitalizations over the trailing 12, 6, and 1 month(s). Relative strength strategies buy securities that have strong intermediate-term relative strength and hold them as long as they remain strong. Performance updated through 1/21/2010.