The following Counter Intuitive Investing (TM) process was developed by Lloyd Williams of www.LloydWilliamsInc.com for top-down analysis of markets including bottom-up fundamental analysis of the individual investment vehicles. This process incorporates the best of relative strength analysis and point and figure charting. For more information or to enroll in Lloyd's next workshop please click:
1. New Money: Invest 25-50% of funds initially 2. Tighten trailing stops to non-round percent 3. Buy only strong / defensive RS positions 4. Trim sectors as BPs move to Os 5. Sell weak RS positions 6. Buy ETFs instead of individual stocks for diversification 7. Reduce agressive posture 8. Increase exposure to defensive or less volatile sectors 9. May buy protective puts to hedge
1. New Money: Hold Cash until Positive 2. Maintain tight trailing stops until stopped out 3. Decrease volatility, aggressive defense position 4. Raise cash levels, Assets of Choice can change here 5. Hold only strong RS sectors, sell weak RS sectors 6. Sell laggards on breakdowns 7. Buy inverse ETFs if both Assets of Choice are cash 8. May buy short equity if both Assets of Choice are cash 9. May buy protective puts to hedge
1. New Money: Invest 50-75% of funds initially 2. Use initial 5% trailing stop until profits 3. Buy ETFs with 5% initial stops until profits 4. Increase trailing stops with profits 5. Sell weak RS position of rallies 6. Buy strong RS sectors and technicals 7. Buy on pullbacks 8. Widen stops to Average Trading Range (ATR)
1. New Money: Hold Cash until Positive 2. Asset of Choice can change here 3. Reduce equity exposure 4. Begin to raise cash 5. Hold only strong RS sectors, sell weak RS sectors 6. Hold only strong RS ETFs 7. Sell weak RS ETFs 8. Build shopping list of ideas 9. May add Protective puts to hedge
1. New Money: Invest 100% of funds initially 2. Use initial 5% trailing stop until profits 3. Increase trailing stop with profits 4. Buy ETFs and stocks on breakouts 5. Buy strong RS sectors 6. May drill down into sectors 7. May bottom fish 8. May take more aggressive positions 9. May buy calls or sell puts
1. New Money: Hold Cash until Positive 2. Prepare for reversal 3. Build shopping list of ideas 4. Take profits in non-correlated investments 5. Trim or take profits in shorts 6. Use tighter buy stops on short positions 7. May use option stops on puts 8. Trim positions in inverse funds 9. Reduce Defensive Posture
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