Quote of the Week

December 10, 2014

George Soros, Soros Capital Management

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.

HT: Business Insider

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RS Chart of The Day

December 10, 2014

spyvsgcc zpsbe16b276 RS Chart of The Day

Point and Figure RS Charts are calculated by dividing one security by another and plotting the ratio on a PnF chart. When the ratio is rising, it is plotted in a column of X’s and reflects the numerator outperforming the denominator. Likewise, when the relative strength ratio is declining, it is plotted in a column of O’s and reflects the outperformance of the denominator.

Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. This example is presented for illustrative purposes only and does not represent a past recommendation. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any security. This post does not attempt to examine all the facts and circumstances which may be relevant to any product or security mentioned herein. We are not soliciting any action based on this document. It is for the general information of clients of Dorsey, Wright & Associates, LLC (“Dorsey, Wright & Associates”). This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any analysis, advice or recommendation in this document, clients should consider whether the security or strategy in question is suitable for their particular circumstances and, if necessary, seek professional advice.

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The Presidential Cycle

December 10, 2014

Piper Jaffray’s Informed Investor report summarizes the historical returns in the 3rd year of a U.S. president’s term:

Historically, the third year of a U.S. president’s term has been the strongest year. Therefore, we believe history supports our belief that 2015 will be another positive year for equities.

a The Presidential Cycle

As shown above, the 3rd year of the presidential cycle has historically posted market returns that more than doubled the prior year. Something to consider as we move into 2015.

Past performance is no guarantee of future results.

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