FAQs Frequently Asked Questions
Q: I received your email regarding the Mkt direction model moving into a buy signal and your recommended actions. But i'm not sure exactly what your action was. Did you buy a 25% stake in SOXL or a 100% allocation? I think the statement about a 25% stake in the SPY would be a good start confused me alittle. Reading about the model I got the sense it was either 100% in, out or in cash. And now I'm not sure and would appreciate any clarity you could give me.
A: We bought a 25% stake in SOXL, but what we do is entirely different from what another investor should do. Each investor has different levels of risk tolerance or investment objectives. It is up to each investor to make this determination for themselves.
A 25% position in SPY would be a good start for conservative investors.
The model's track record is based on 100% long NASDAQ Composite (QQQQ is a good proxy) on a buy signal, 100% short NASDAQ Composite (PSQ is a good proxy) on a sell signal, and 100% cash on a neutral signal.
First published: | 3 Sep 2010 |
Last updated: | 3 Sep 2010 |