In August 1933 the LT Indicant crossed below the LT Trip Line. This signaled
the market was turning bullish. At that time the Dow Jones Industrial Average
was at 102.4 or 70% below the Indicant's last sell signal in September 1929.
The LT Indicant crossed above the LT Trip Line in September 1937 with the Dow
at 155. The looming threat of World War II stimulated significant nervousness in
the LT Indicant. It hovered above the LT Trip Line throughout most of World War
II. When the LT Indicant is above the LT Trip Line and the market is below the
Lag Line, it is recommended to remain out of the stock market.
The buy/sell cycle in the LT Indicant was relatively short, lasting only four
years. But the LT Indicant investor enjoyed a 50% increase in their investment
between August 1933 and November 1937.
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