Market Timing Signals Track Record
Click here for a list of all buy & sell signals generated since January 1, 1995.

Market timing is one of the more controversial aspects of investing. Market timers only invest long (buy) when they think the market, or a particular segment of the market, is in an uptrend. Market timing signals based on market indices can be used to trade index options, funds or other products designed to emulate particular indices, or to time the purchase and sale of individual stock appropriate to a particular index.

This is a chart of the S&P 500 Index signals generated by our computerized timing system. This system uses a combination of technical indicators to trigger buy (green arrows) and sell (red boxes) signals.

The results are hardly ideal. Even though the system caught most of the major moves, there were periods where it generated repetitive buy and sell signals without making any money (whipsaws), even though the S&P went up.

You can look at timing signals the same way you view fire insurance. Most of the time you pay for insurance without getting anything back. But if your house catches fire, the insurance is a lifesaver. Same thing with market timing. Those whipsaws cost you money. But if the market tanks, the system gets you out in time to fight another day.

If you’re using the market timing signals for stocks, you should use an index appropriate to your stocks. Here are the four indices we cover and the corresponding stocks.

Experts tell us you cannot time the market, and those who try are doomed to miss some of the strongest days before they realize the market is in an uptrend. It’s hard to argue with their logic in a bull market. If you know the market is going to keep going up, your best strategy is to pour more money in on the dips.

But what if the market drops for an extended period of time. Should we just sit there and watch our capital dwindle while the market keeps falling. Wouldn’t it make sense to get out and wait for the market to strengthen before we get back in, even if we don’t catch the absolute bottom.

Our timing system looks only at information contained within the charts. It does not take into account general economic conditions, interest rates, etc. It will not predict market turns caused by unexpected world events such as terrorist attacks, government upheavals, etc. We make no promises that following these signals will be more profitable than a simple buy and hold strategy.