RS Charts of the Week

July 31, 2015

SPYVSAGG zpsy6t4dbjx RS Charts of the Week

SPYVSIYR zpslyhalaky RS Charts of the Week

SPYVSGCC zpslv9gne2f RS Charts of the Week

SPYVSEEM zps5cn3nci1 RS Charts of the Week

SPYVSEFA zpsh1nga0h5 RS Charts of the Week

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

Posted by:


Sector Performance

July 24, 2015

The chart below shows performance of US sectors over the trailing 12, 6, and 1 month(s).  Performance updated through 7/23/15.

sector Sector Performance

The performance above is based on pure price returns, not inclusive of dividends or all transaction costs.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    Source: iShares

Posted by:


RS Charts of The Week

July 24, 2015

SPYvsAGG zpsqs8hhsrs RS Charts of The Week

SPYVSIYR zpseyq1jwj4 RS Charts of The Week

SPYVSGCC zps4496omgh RS Charts of The Week

SPYVSEEM zps2degwxvt RS Charts of The Week

SPYVSEFA zpsiljjarcr RS Charts of The Week

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.

Posted by:


RS Charts of The Week

July 17, 2015

SPYVSAGG zps6wq1b2li RS Charts of The Week

SPYVSIYR zpsn6sijbru RS Charts of The Week

SPYVSGCC zpsaodjvepm RS Charts of The Week

SPYVSEEM zpss7nhx4ut RS Charts of The Week

SPYVSEFA zpsulqn7drx RS Charts of The Week

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.

Posted by:


Quote of the Week

July 16, 2015

Leda Braga at Delivering Alpha (Institutionalinvestor.com):

The business of investment management is the business of data management.  The algorithmic approach is the best way to do that.

Posted by:


DWA Q3 2015 Update Webinar Replay

July 15, 2015

On Tuesday, we conducted a webinar to discuss the current state of the market through the lens of DWA. We like to hold these calls at the beginning of each quarter, as that is when we reconstitute and rebalance our Technical Leaders Indexes, which are tracked by the 14 PowerShares ETFs. Tom Dorsey, Founder of DWA, Paul Keeton, Vice President, and John Lewis, Vice President and Portfolio Manager, hosted the discussion, which is now available through the link below.

Follow this link to access a replay of this webinar.

Follow this link to access a PDF of the presentation slides used in this webinar.

Nothing contained herein should be construed as an offer to sell or the solicitation of an offer to buy any se­curity. This email and included links do not attempt to examine all the facts and circumstances which may be relevant to any company, industry 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. Dorsey, Wright & Associates, its officers, directors, partners and/or other associated persons may own, hold options, rights or warrants to purchase some of the securities or assets mentioned in this email, or close equivalents. Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss. 

Posted by:


NYSE High-Low Index Below 30

July 10, 2015

The NYSE High-Low Index is a short term indicator calculated by dividing the number of stocks making new 52-week highs by the stocks achieving new highs and new lows. The daily NYSE HILO reading is based upon a 10-day moving average of the aforementioned calculation, which smooths out the movement over time.  It doesn’t speak often, but when it does we have found it to be meaningful.

nysehilo NYSE High Low Index Below 30

The last 5 times the NYSEHILO has reversed to a column of X’s from below 30% are shown below (and the change in the S&P 500 90 days later):

sp NYSE High Low Index Below 30

 Source: Yahoo! Finance.  Price return only, not inclusive of dividends.

A more in depth study of the NYSE High-Low Index can be found here (Harold Parker’s 1996 paper published in the MTA Journal).

It is worth noting that this index has not yet reversed to a column of X’s.  However, it may be time to start thinking about putting new money to work.

Investors cannot invest directly in an index.  Indexes have no fees.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.

Posted by:


RS Charts of The Week

July 10, 2015

SPYVSAGG zpsceb1pebs RS Charts of The Week

SPYVSGCC2 zps7pt0xhbf RS Charts of The Week

SPYVSIYR zpsiwirs1w9 RS Charts of The Week

SPYVSEEM zpsooslac1f RS Charts of The Week

SPYVSEFA zpswhu65app RS Charts of The Week

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.

Posted by:


Tweet of the Day

July 8, 2015

Via Ben Carlson:

china Tweet of the Day

Posted by:


Tweet of the Day

June 23, 2015

Why an exclusive focus on yield can be a problem, via Bespoke:

bespoke Tweet of the Day

Ultimately, total return is what matters.

Posted by:


RS Charts of The Day

June 19, 2015

SPYVSAGG zpsciamomhk RS Charts of The Day

SPYVSGCC zpstzxo9vuu RS Charts of The Day

SPYVSIYR zps9w8v1gpq RS Charts of The Day

SPYVSEEM zpsjwrxzhft RS Charts of The Day

SPYEFA zpsdtkkujwe RS Charts 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.

Posted by:


Sector Performance

June 19, 2015

The chart below shows performance of US sectors over the trailing 12, 6, and 1 month(s).  Performance updated through 6/18/2015.

gics Sector Performance

The performance above is based on pure price returns, not inclusive of dividends or all transaction costs.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    Source: iShares

Posted by:


A World of Languages

June 18, 2015

A proportional visualization of the world’s most popular languages from Open Culture:

languages A World of Languages

 

Click here for a larger format.

And here is a mind blowing stat:

Although the 23 languages visualized above are collectively spoken by 4.1 billion people, there are at least another 6700 known languages alive in the world today.

From an investment perspective, analyzing companies across all these languages, countries, and cultures can be a daunting, if not impossible, task.  However, a momentum strategy is built from just one input–price–and that common denominator enables us to use essentially the same relative strength engine on a variety of investment universes.  Just one of the many benefits of a momentum-based approach to investing.

HT: Jim O’Shaughnessy

Posted by:


RS Chart of The Day

June 11, 2015

SPYVSAGG zps8x6f6vpf RS Chart of The Day

 

SPYVSIYR zpsuu3trfai RS Chart of The Day

 

SPYVSGCC zpsrtgzessq RS Chart of The Day

spyvseem zpssk14f92h RS Chart of The Day

 

SPYVSEFA zpsqijnvhsv 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.

http://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.

Posted by:


Average is Over

June 5, 2015

Tyler Cowen’s book Average Is Over provided me some important insight into the ever-changing nature of our global economy—and particular insight into why some financial advisors are seeing their businesses thrive and others are struggling to stay afloat.  Growing income inequality seems to be a hard trend that economists and politicians have debated ad nauseam in recent decades.  Consider Cowen’s take on why this growing disparity is taking place and where we go from here:

This imbalance in technological growth will have some surprising implications.  For instance, workers more and more will come to be classified into two categories.  The key questions will be:  Are you good at working with intelligent machines or not?  Are your skills a complement to the skills of the computer, or is the computer doing better without you?  Worst of all, are you competing against the computer?

…If you and your skills are a complement to the computer, your wage and labor market prospects are likely to be cheery.  If your skills do not complement the computer, you may want to address that mismatch.  Ever more people are starting to fall on one side of the divide or the other.  That’s why average is over.

Surely, we in the financial services industry can attest that this is true.  Those advisors who have embraced technology have likely seen their businesses rapidly expand over the past decade.  They find themselves to be significantly more productive, able to manage much more money with seemingly less effort, and better able to stay connected to their growing number of clients in meaningful ways.  Those advisors who have not embraced technology, still trying to do business the way they did it in years past, are being left behind.

Subscribers of DWA research are keenly aware that there has been a wee bit (ok an enormous amount) of innovation over the years in our research database.  The core PnF principles from decades past are still there (supply and demand still determine price just like they always have).  However, this method that once involved hand charting stocks on a piece of graph paper has been computerized.  Now, our research is focused on rules-based asset allocation models, guided ETF models, and relative strength matrices that allow advisors to customize and systematize their own investment strategies at the click of a mouse.

We have also seen our assets under advisement take giant leaps forward…yet the firm still has about the same number of employees we had a decade ago.  How is this possible?  We are managing money with a reliance on systematized relative strength models which allow for tremendous efficiency and, we believe, better investment results that non-systematized approaches to investing.  Are there still money management firms that employ vast armies of analysts feeding data to investment committees who regularly meet for long meetings to debate investment strategy?  Yes, but those are among the people that Cowen is talking about when he asks, “are you competing against the computer?”

The future is very bright for those advisors who stay on the right side of technology.  For those that don’t, they are going to find it harder and harder to stay average.

A relative strength strategy is NOT a guarantee.  There may be times where all investments and strategies are unfavorable and depreciate in value.

Posted by:


RS Chart of The Day

June 4, 2015

SPYVSEEM zps4votqfzi 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.

Posted by:


RS Chart of The Day

June 3, 2015

SPYVSGCC zpskarc4mw5 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.

Posted by:


RS Chart of The Day

June 2, 2015

SPYVSIYR zpsoxi5jxm1 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.

Posted by:


RS Chart of The Day

June 1, 2015

SPYVSAGG zps6oklrsuu 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.

Posted by:


RS Chart of The Day

May 29, 2015

SPYVSEEM zpsknaxolpf 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.

Posted by:


Sector Performance

May 29, 2015

The chart below shows performance of US sectors over the trailing 12, 6, and 1 month(s).  Performance updated through 5/28/15.

sector4 Sector Performance

The performance above is based on pure price returns, not inclusive of dividends or all transaction costs.  Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    Source: iShares

Posted by:


RS Chart of The Day

May 28, 2015

SPYVSGCC zpssj6wch6g 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.

Posted by:


RS Chart of The Day

May 27, 2015

SPYVSIYR zps2zlvleun 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.

Posted by:


RS Chart of The Day

May 26, 2015

SPYVSAGG zps846hno4w 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.

Posted by:


Quote of the Week

May 22, 2015

Janet Yellen today in a speech in Providence, RI:

I am describing the outlook that I see as most likely, but based on many years of making economic projections, I can assure you that any specific projection I write down will turn out to be wrong, perhaps markedly so.

Posted by: