Below is an example of our weekly newsletter.
8-13-10 RIX Newsletter
Recent Signals
7-13-10 NYSE Buy Signal
8-11-10 Nasdaq Sell Signal
How to interpret RIX Numbers
NYSE RIX +12.0 Buy Signal -12.0 Sell Signal
NASDAQ RIX +6.0 Buy Signal -6.0 Sell Signal
It’s that simple.
The NYSE RIX
The NYSE RIX has been on a Buy Signal since 7-13-10.
This reversed a Sell Signal issued on 6-29-10.
Daily Readings this past week for the NYSE RIX Index:
Mon. +28.9 ; Tues. +18.9 ; Wed.+3.9 ; Thurs -2.0 ; Fri. -3.8
This week the NYSE RIX has gone from a reading of
+24.0 Last Friday to a reading of -3.8 today (Friday)
The NASDAQ RIX
The NASDAQ RIX has been on a Sell Signal since 8-11-10
This reversed a Buy Signal issued on 7-23-10
Daily Readings this past week for the NASDAQ RIX Index:
Mon. +9.2; Tues. -2.1; Wed. -15.0; Thurs. -18.9; Fri. -26.0
This week the NASDAQ RIX has gome from a reading of
+5.5 Last Friday to a reading of -26.0 today. (Friday)
How did the averages do this past week?
| 8-6-10 | 8-13-10 | Change | Last Signal Price | |
| Dow | 10,653.56 | 10,303.15 | -350.41 | 10,363.02 Last Buy Signal (7-13-10) |
| S&P 500 | 1,121.64 | 1,079.25 | -42.39 | 1,095.34 Last Buy Signal (7-13-10) |
| Nasdaq | 2,288.57 | 2,173.48 | -115.09 | 2,208.63 Last Sell Signal (8-11-10) |
| New Hi | 286 | 229 | -57 | |
| New Lows | 70 | 92 | +22 |
Jim’s Commentary
It’s tough when the market goes into a loop. Where it goes up for a short time and then turns down. Or it goes down for a short time and turns up. These short swings usually end up giving us small losses. Fortunately, these whipsaws do not happen too frequently. But they are annoying and they could cause new subscribers to lose confidence or wonder if the RIX Strategy is really working. I have received a few phone calls and e-mails from new subscribers expressing concern that they are losing money on these swings. I don’t think that words can convince them that this is part of the investing game. Their first reaction is that the RIX Signals are not working.
If they had started in March 2009 and their first two trades were very profitable, maybe they could see that the RIX Strategy works, because we all want to make profits and avoid losses. So it all depends when they start with the program. When they achieve confidence in the Strategy, they will act on every Signal, they won’t try to anticipate a Signal, and they will stop listening to the “experts” who keep predicting what the market is going to do.
It takes awhile to develop confidence in the RIX Strategy. After all, the Strategy has to prove to the subscriber that it isn’t just another useless Market Timing service that is based on useless predictions and guesses. We all have to be careful about who we listen to and what the services have to offer. I am convinced that there isn’t another market timing service out there that provides daily numbers that represent the trend of the market. If there is, I haven’t seen it. Most services either make predictions about the future course of the market or they claim to make timing decisions based on “Technical Analysis”. What they claim is technical analysis varies all over the lot. And those theories may sound good, but the proof is in the results.
We hear about stocastics, fibonacci’s, resistance levels, head and shoulder formations, volatility indexes, Bollinger Bands, follow through days, volume reversals, point and figure formation, Elliott Wave Theories, flags, pennants, breakouts, gaps, consolidations, buying opportunities, inflation, deflation, depression, pull backs, whipsaws, short squeezes, ema’s, sma’s, 50day, 100day, 200day lines, interest rates, unemployment reports, money supply, quantitative analysis, These are just a few that pop into my head. I am sure you can add to the list. My point is, the average investor might be convinced to act when these types of theorys are thrown at them by people that they consider “experts”. I say that if you depend on more than one indicator to make your market timing decisions, it’s too many, and it becomes confusing, and it’s one to many.
My RIX Index makes all of these theorys unnecessary. If you stick with the RIX, you will know when the trend of the stock market changes direction. That’s what you really need to know, when it comes to market timing or trend following.. That sounds like bragging, but it’s not bragging, if it’s true.
My job is to identify changes in the trend in the trend of the stock market which has been characterized as, “The Most Complex Economic Problem Faced By Mankind.” That’s my job and I will continue to use mathematics to identify changes in the trend of the stock market. So I guess I do not have to listen to all of the BS.
TELL A FRIEND. If you are pleased with my service, and you know someone who is struggling with this market, please tell them about my service. You will be helping them, and you will be helping me.
My mission is to help the average investor with the very difficult task of knowing when to get in and when to get out of the stock market. If we listen to the Signals we can strip out most of fears that accompany decisions to invest in the market. And the Signals will get us in early in an up move, keep us in, and take us out before a major down move
If you are watching the market constantly and are always fearful of losing money, you have to accept the RIX Signals, act on them, and take more naps.
I am repeating these results for my 3-18-09 Nyse Buy and
6-23-09 Sell Signal, for those who may not have seen them.
Symbol Buy 3-18-09 Sell 6-23-09 % Gain
UAPIX Profunds Ultra Small Cap $6.37 $8.22 29.0%
ULPIX ProFunds Ultra Bull Fund 16.95 21.11 24.5%
HOTFX Upgrader Fund 24.93 26.35 5.7%
FUNDX Upgrader Fund 21.56 23.08 7.1%
Dow 30 Index 7,486.56 8,322.91 11.2%
DIA Diamond Trust ETF 74.97 84.22 12.3%
S&P 500 Index 794.75 895.10 12.6%
SPY SPGR Trust ETF 79.93 89.35 11.8%
SSO Ultra 500 ETF 19.89 24.75 24.4%
Nasdaq Comp. Index 1,491.52 1,754.92 18.3%
QLD Proshares TRS QQQQETF 25.88 35.37 36.7%
MVV Proshares TR MidCapETF 19.31 24.80 28.4%
UMPI ProFunds Ultra Mid Cap 12.56 16.16 28.5%
RYTNX Rydex Ultra 500 11.33 14.23 25.6%
Here are results for my 7-16-09 NYSE Buy Signal and
10-28-09 Sell Signal.
Symbol Buy 7-16-09 Sell 10-28-09 % Gain
UAPIX Profunds Ultra Small Cap $9.28 $10.85 16.9%
ULPIX ProFunds Ultra Bull Fund 23.26 28.46 22.4%
HOTFX Upgrader Fund 28.04 31.54 12.5%
FUNDX Upgrader Fund 24.53 27.64 12.7%
Dow 30 Index 8,711.82 9,762.69 12.1%
DIA Diamond Trust ETF 87.23 97.68 12.0%
S&P 500 Index 940.74 1,042.63 10.8%
SPY SPGR Trust ETF 93.11 104.41 12.1%
SSO Ultra 500 ETF 27.19 33.44 23.0%
Nasdaq Comp. Index 1,885.03 2,059.61 9.3%
QLD Proshares TRS QQQQETF 40.04 48.78 21.8%
MVV Proshares TR MidCapETF 28.00 35.09 25.3%
UMPIX ProFunds Ultra Mid Cap 18.25 22.76 24.7%
RYTNX Rydex Ultra 500 15.67 19.30 23.2%
Most investors would be happy with some of these returns, for an entire year. As you know, I am not in the business of recommending investment vehicles. These have been sent to me by subscribers and I show them for your consideration. Please feel free to verify my math and to update results as you wish. I personally trade RYTNX and ULPIX. They are leveraged 2 times the S&P500 so I am not recommending them because they can drop faster because of the leverage.
I have a Web Page on the Money Show Site. Go to:
http://www.moneyshow.com/directory/company.asp?acctid=7780
I will post articles and videos on this site from time to time.
Study the NYSE Historical Signals listed later in this Newsletter. They will give you a good feel for how long Buy and Sell Signals have lasted since the start of this Bull Market on 3-21-03. The dates can also be used to see how your favorite investment(S) would have done during the same period.
Take a look at your investments and see how they performed using BigCharts.com Historical Prices.
Use the Signals below as a tool to find out if an investment you are considering has performed well in an up and down market. You can start with $10,000 and then use the Buy and Sell Signals to see how the stock or fund performed. It’s much better if you do the work and find out for yourself instead of listening to someone else’s recommendation. Besides, it’s fun to do your own analysis.
NYSE Historical Signals
Buy Signal 3-20-03 Buy Signal 7-3-06 Buy Signal 8-28-08 Buy Signal 2-16-10
Sell Signal 8-01-03 Sell Signal 3-2-07 Sell Signal 9-15-08 Sell Signal 5-6-10
Buy Signal 8-18-03 Buy Signal 3-20-07 Buy Signal 11-4-08 Buy Signal 6-11-10
Sell Signal 3-22-04 Sell Signal 6-6-07 Sell Signal 11-11-08 Sell Signal 6-29-10
Buy Signal 4-01-04 Buy Signal 7-3-07 Buy Signal 12-8-08 Buy Signal 7-13-10
Sell Signal 4-15-04 Sell Signal 7-24-07 Sell Signal 1-20-09
Buy Signal 5-25-04 Buy Signal 8-24-07 Buy Signal 2-6-09
Sell Signal 7-21-04 Sell Signal 10-19-07 Sell Signal 2-17-09
Buy Signal 8-18-04 Buy Signal 12-6-07 Buy Signal 3-17-09
Sell Signal 3-16-05 Sell Signal 12-17-07 Sell Signal 6-22-09
Buy Signal 5-04-05 Buy Signal 1-31-08 Buy Signal 7-1-09
Sell Signal 9-21-05 Sell Signal 3-4-08 Sell Signal 7-8-09
Buy Signal 11-07-05 Buy Signal 4-1-08 Buy Signal 7-15-09
Sell Signal 4-11-06 Sell Signal 6-9-08 Sell Signal 10-27-09
Buy Signal 5-5-06 Buy Signal 7-30-08 Buy Signal 11-16-09
Sell Signal 5-15-06 Sell Signal 8-25-08 Sell Signal 1-22-10
The above dates are the actual Signal dates issued after the close.
I want to thank all of the subscribers who renewed their subscriptions recently. Congratulations on becoming Certified Mechanical Investors (CMI). You make my work worthwhile.
I want to welcome all the new subscribers, and I want to especially thank the subscribers who referred new subscribers to my service. You are the people who can make a difference because you have experienced my service and you can do your friends and me a favor by telling them that you like my service. It’s great that you are willing to help someone who is struggling and maybe losing money in the stock market.
“You can have whatever you want, if you help enough people get what they want”. Zig Zigler