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Indicant beats buy and hold......

 

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Indicant's MTI-RYS model outperforms Buy&Hold by 1,588.7% from 1900 through 1940.  Buy and hold's $10,000 invested in 1900 amounts to $19,434. The 1900 thirty-year old buy and hold investor is now seventy years old and finally back in the money. No retirement is possible with these meager earnings. The Indicant's $10,000 1900 investment increased to $328,179. That was retirement money in 1940. See table below chart. Scroll down for additional links and to continue tour.

No. of Bull/Bear Cycles Chart Bull Signal No. Bull Signal Event Trigger Bull Sig Date Bull Signal Price Chart Bear Signal No. Bear Signal Event Trigger Bear Sig Date Bear Signal Price MTI-RYS % Gain or <Loss> MTIRYS Account Balance Buy and Hold Account Balance Indicant Performance Advantage MTIRYS Bull Cycle Duration # of Weeks) MTIRYS Bear Cycle Duration # of Weeks)
  0 Beginning Investment 12/29/1899 65.73           $10,000 $10,000      
        1 P<R, ITL 5/14/1937 169.15 169.8% $297,157 $25,734 1054.7% 213.0 9.0
37 2 P>ITL 7/16/1937 179.53 3 P<R, ITL 8/27/1937 175.91 -2.0% $291,165 $26,763 988.0% 6.0 9.0
38 4 P>ITL 10/29/1937 138.48 5 P<R, ITL 11/5/1937 128.92 -6.9% $271,065 $19,614 1282.0% 1.0 10.0
39 6 P>Y 1/14/1938 131.84 7 P<Y, ITL 1/28/1938 120.66 -8.5% $248,078 $18,357 1251.4% 2.0 4.0
40 8 P<Y 2/25/1938 131.58 9 P<Y, ITL 3/4/1938 127.78 -2.9% $240,914 $19,440 1139.3% 1.0 14.0
41 10 P>ITL 6/10/1938 114.47 11 P<ITL, R 12/2/1938 147.57 28.9% $310,576 $22,451 1283.4% 25.0 2.0
42 12 P>R 12/16/1938 150.89 13 P<ITL, R 1/13/1939 146.52 -2.9% $301,582 $22,291 1252.9% 4.0 16.0
43 14 P>Y 5/5/1939 131.47 15 P<ITL, R 11/10/1939 149.09 13.4% $342,000 $22,682 1407.8% 27.0 43.0
44 16 P>Y 9/6/1940 133.12 17 P<Y, ITL 9/13/1940 127.74 -4.0% $328,179 $19,434 1588.7% 1.0 2.0
45 18 P>Y 9/27/1940 131.76

 

Year Incumbent Trip Line at start of BRS-1 Cycle BRS1 config @ conclusion of cycle Rule for BRS-1 Cycles Action @ conclusion of BRS-1 Cycle New Incumbent Trip Line Name Incumbent Trip Line at start of BRS-2 Cycle BRS2 config @ conclusion of cycle Rules for BRS-2 Cycles Action at conclusion of BRS-2 Cycle or when it becomes Hybrid New Incumbent Trip Line Name
1936 1935-R-BRS-2-TLX HR B EITL N/A 1935-R-BRS-2-TLX R A ATL 1936-R-BRS-2-TLX
1937 1936-R-BRS-2-TLX HR B EITL N/A 1936-R-BRS-2-TLX N B ATL 1937-N-BRS-2-TLN
1938 1937-N-BRS-2-TLN Y C ATL 1938-Y-BRS-1-TLN 1938-Y-BRS-1-TLN HR C,D ATL 1938-HR-BRS-2-TLX
1939 1938-HR-BRS-2-TLX N B EITL N/A 1938-HR-BRS-2-TLX HR C,D ATL 1939-HY-BRS-1-TLN
1940 1939-HR-BRS-2-TLX N B EITL N/A 1939-HR-BRS-2-TLX HY B ATL 1940-HY-BRS-2-TLN

 

DJIA Index is congruent with presidential election cycle historical standards. The post election year of 1937 was characteristically bearish, while the mid-term election year again found the market's bottom.

The market was a little slow predicting the recession. It peaked about three months before the recession began.

The magnitude of the post election year bearishness reflects a continuum stream of FDR's new deals, where commerce is now going to be influenced by bureaucrats as opposed to hard-driving, profit minded capitalists. The Great Depression was caused by politicians and a whole generation had to live through their slow methods of fixing the problem they created. That took quite a bit of energy from those inclined with capitalistic behavioral patterns. You will see later that the capitalistic-minded eventually recovered.

Keep in mind that one's quality of thinking will never be as good when using someone else's money. Politicians do not use their own money. Even good people who get into politics will be incapable of making quality-like bottom-line decisions.

The pre-election year and election year were both uncharacteristically bearish due to a combination of continuing increases in political influences and their philosophically created next world war. Smoot-Hawley led to world wide unemployment, enhancing increased political rhetoric and national pride around the world. If one cannot get a job, then one joins their respective armies. What else is there to do, but fight and die for that national pride at the expense of individual happiness?

As you can see, bullish seasonality (pink) is incongruent to historical standards during the bearish market periods and bearish seasonality (white) is also incongruent to historical standards during bullish periods.

 

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Click to see the entire table for the DJIA Index since 1900.

 

Click for understanding Trip Line assignment and construction.

Click for identifying and understanding the Incumbent Trip Line

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