Saturday, April 14, 2007

Market Trends

This is a graph from Marketocracy.com. The orange line is my 2 year progress starting with 1 million dollars. The lines below are the S&P 500, NASDAQ, DOW, and the Top 100 investors on the 75,000 member site. 1.7 Million dollar profit in 2 years or 176.8 % increase.

This gain was achieved with over 20 stocks I have held for a minimum of 1 year each. The stock market follows certain trends that extend their impact over 6-24 months. Many years ago, when buggy whips were the trend, this time frame was 3-6 years. This trending time frame has contracted over the years and soon will be measured in days not months. When the trending line reaches days, you or I will not have the intelligence to react correctly and will need software such as hedge funds use today.

I have tracked the trending lines in the market relative to the doubling of computer intelligence, which has moved from 18 months to 11 months, and the market is 30% behind, but it still is a significant factor affecting buying/selling decisions.

Wednesday, 18 April, I will List the stocks I presently own in my portfolio which has returned 80% a year. I was reluctant to do this, due to trending changes, but felt the time was right if I were to be diligent with updates. Presently I am still in the top 1% in the CNB Stock Contest. However this contest is really a crap shoot. See earlier comments.

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