PrintNumber | ErrorLocation | Error | Correction | DateAdded |
---|---|---|---|---|
1 | piv | First Printing April 2010 | Second Printing June 2010 | 5/13/2010 |
1 | pix | Sell All Positions on a Dashboard Sell Signal 102 |
Sell All Equity Positions on a Dashboard Sell Signal 102 |
6/7/2010 |
1 | pxii | Sell All Positions on a Dashboard Sell Signal 192 |
Sell All Equity Positions on a Dashboard Sell Signal 192 |
6/7/2010 |
1 | pxviii | From 2004 through 2009 he was also a Financial Advisor offering investment management services to retail clients. Earlier in his career, he worked at the large banks for a total of 17 years as a Vice President at Citibank, an Assistant Vice President at Bank of America, and an Assistant Secretary at Irving Trust Company. | He was also a Financial Advisor for six years offering investment services to retail clients. Earlier in his career, he worked at three large banks for a total of 17 years as a Vice President at Citibank, an Assistant Vice President at Bank of America, and an Assistant Secretary at Irving Trust Company. | 6/7/2010 |
1 | p2 | From 2005 to 2009, I was a Financial Advisor advising clients on their investments | From early 2004 to early 2010, I was a Financial Advisor advising clients on their investments | 6/7/2010 |
1 | p10 | I can be reached at lesmasonson@yahoo.com. | I can be reached at les@buydonthold.com. | 6/7/2010 |
1 | p17 | According to Morningstar,1 the average annual return from 1926 to 2008 of three well-known asset classes was as follows: | According to Morningstar,1 the average annual return from 1926 through 2008 of three well-known asset classes was as follows: | 6/7/2010 |
1 | p46 | In the ideal world, investors who diversify their portfolio using stocks and bonds (whether actual securities or mutual funds of ETFs) based on their predetermined risk tolerance should do well. | In the ideal world, investors who diversify their portfolio using stocks and bonds (whether actual securities or mutual funds or ETFs) based on their predetermined risk tolerance should do well. | 6/7/2010 |
1 | p94 | ETF Web Sites Add www. etfreplay.com Delete www.etffrends.com |
fixed | 6/7/2010 |
1 | p101 | 2. Invest 25% with a +3 reading and then 25% more for each additional positive reading above +3. | 2. Invest 80% with a +3 reading and then 15% more for each additional positive reading above +3. | 6/7/2010 |
1 | p101-102 | 3. Invest 10% with a +3 reading, and an additional 10% for each additional positive reading, except that when +7 (the maximum reading) is reached, youll be investing the remaining 60% of your funds, as detailed here: | 3. Invest 25% with a +3 reading, and an additional 20% for each additional positive reading, except that when +7 is reached, youll be investing the remaining 15% of your funds, as detailed here: | 6/7/2010 |
1 | p102 | 10% with a +3 10% with a +4 10% with a +5 10% with a +6 60% with a +7 |
25% with a +3 20% with a +4 20% with a +5 20% with a +6 15% with a +7 |
6/7/2010 |
1 | p102 | This is the most conservative approach, in which you wait until the last signal is triggered to invest the largest single chunk of your money. | This is a conservative approach, in which you spread your money out in order to wait for additional confirming positive signals. | 6/7/2010 |
1 | p102 | Sell All Positions on a Dashboard Sell Signal When a dashboard sell signal (3) is given, you should sell all portfolio positions. |
Sell All Equity Positions on a Dashboard Sell Signal When a dashboard sell signal (3) is given, you should sell all equities. |
6/7/2010 |
1 | p104 | The logic of using this indicator is that when the new lows overwhelm the new highs, the market typically reserves direction and keeps rising. | The logic of using this indicator is that when the new lows overwhelm the new highs, the market typically reverses direction and keeps rising. | 6/7/2010 |
1 | p105 | Likewise, when this number falls to 25% or below and starts to turn up, that is a buy signal, as the market low has probably been reached. | Likewise, when this number falls to 30% or below and starts to turn up, that is a buy signal, as the market low has probably been reached. | 6/7/2010 |
1 | p105-106 | 5. AAII Weekly... moves to 6. 6. MACD... moves to 5. |
fixed | 6/7/2010 |
1 | p112 | Likewise, when this percentage drops to 25% or below and starts to turn up, that is the time to invest since most stocks have reached their low points. | Likewise, when this percentage drops to 30% or below and starts to turn up, that is the time to invest since most stocks have reached their low points. | 6/7/2010 |
1 | p112 | The market lows in 2008 and 2009 can easily be seen where the column of os switched to a column of xs from below a reading of 25. | The market lows in 2008 and 2009 can easily be seen where the column of os switched to a column of xs from below a reading of 30%. | 6/7/2010 |
1 | p117 | The earlier we get multiple signals, the earlier we can enter or exit the market, proving higher returns. | The earlier we get multiple signals, the earlier we can enter or exit the market, providing higher returns. | 6/7/2010 |
1 | p120 | The next buy signal would not be available until the favorable period begins (the following October/November period) confirmed buy a new MACD buy signal. | The next buy signal would not be available until the favorable period begins (the following October/November period) confirmed by a new MACD buy signal. | 6/7/2010 |
1 | p124 | When you reach +3, that is the time to put a portion, say 25%, of your money to work. As more positive signals trigger, you can incrementally add the remainder of your available funds. Likewise, when a dashboard sell signal of 3 or more is registered, you would exit the market with all your positions and place the proceeds in a money market fund or cash equivalents until the next dashboard buy signal is generated. |
When you reach +3, that is the time to put a large portion of your money to work. As more positive signals trigger, you can incrementally add the remainder of your available funds. Likewise, when a dashboard sell signal of 3 or more is registered, you would exit the market with all your equity positions and place the proceeds in a money market fund or cash equivalents until the next dashboard buy signal is generated. |
6/10/2010 |
1 | p124 | Overall you should expect between one to four buy signals and the same number of sell signals, per year on average, but there may be times when this number is exceeded. | Overall you should expect between one to two buy signals and the same number of sell signals, per year on average, but there may be times when this number is exceeded. | 6/10/2010 |
1 | p126 | Source of free chart: www.indexindicators.com. Go to the tab on the top line labeled Breadth Indicators, click the down arrow, select NYSE Composite, select Percentage of NYSE Stocks Above 50-Day Moving Average, and the chart will open. | Source of free chart: http://stockcharts.com. Click the Free Charts tab at the top of the home page. In the Sharp Charts section at the top center of the page type $nya50R as the ticker symbol and click go to bring up the chart. Leave all settings. | 6/10/2010 |
1 | p127 | When that number reaches 25% to 30% and starts dropping, that is a sell signal. Buy signal value: +1. Sell signal value: 1. You can use the paper edition of Barrons or the online version if you are a subscriber. |
When that number reaches 25% and starts dropping, that is a sell signal. Buy signal value: +1. Sell signal value: 1. You can use the paper edition of Barrons or the online version if you are a subscriber. Neutral signal: 0 (assigned exactly 6 months after initial signal, if there is no new signal). |
6/10/2010 |
1 | p128 | You subtract the two numbers to arrive at the difference. Remember, for the buy signal, you need weekly data only. | Delete sentence. | 6/10/2010 |
1 | p128 | Source of new highs: Use Barrons online or the paper edition to access the data. Barrons is published weekly and most libraries have Barrons on their shelves. | Source of new highs: Use Barrons online or paper edition or free public edition at http://online.barrons.com/mktlab and click on Trading Diary. Data is under chart. | 6/10/2010 |
1 | p128 | 4. NYSE Bullish Percentage on a Point-and-Figure Chart Chart setting: Daily. Buy signal: Percentage falls to 25% or below and starts to turn up. Sell signal: Percentage peaks above 70% and starts to turn down. Buy signal value: +1. Sell signal value: 1. |
4. NYSE Bullish Percentage on a Point-and-Figure Chart Chart setting: Daily. Buy signal: Percentage falls to 30% or below and starts to turn up. Sell signal: Percentage peaks above 70% and starts to turn down. Buy signal value: +1. Sell signal value: 1. Neutral signal: 0 (assigned exactly 6 months after initial signal, if there is no new signal). |
6/10/2010 |
1 | p128-129 | 5. AAII Weekly Investor Sentiment Survey Bullish Percentage Chart setting: Weekly. Buy signal: The bullish percentage drops to 25% and then rises the next week. Sell signal: The bullish percentage rises to 50% and then drops the next week. Buy signal value: +1. Sell signal value: 1. |
6. AAII Weekly Investor Sentiment Survey Bullish Percentage Chart setting: Weekly. Buy signal: The bullish percentage drops to 25% and then rises the next week. Sell signal: The bullish percentage rises to 50% and then drops the next week. Buy signal value: +1. Sell signal value: 1. Neutral signal: 0 (assigned exactly 6 months after initial signal, if there is no new signal). |
6/10/2010 |
1 | p129 | 6. MACD (Moving Average Convergence-Divergence) Indicator Reading on the NASDAQ Composite Index Chart setting: Daily. Buy signal: Price of lower MACD line rises from below and crosses the other MACD line. Sell signal: Price of the higher MACD line declines and crosses the other MACD line from above. Buy signal value: +1. Sell signal value: 1. |
5. MACD (Moving Average Convergence-Divergence) Indicator Reading on the NASDAQ Composite Index Chart setting: Daily. Buy signal: Price of lower MACD line rises from below and crosses the other MACD line. Sell signal: Price of the higher MACD line declines and crosses the other MACD line from above. Buy signal value: +1. Sell signal value: 1. Neutral signal: 0 (assigned exactly 6 months after initial signal, if there is no new signal). |
6/10/2010 |
1 | p131 | Neutral signal: 0 (NASI buy or sell signal not confirmed by MACD crossover). | Delete sentence | 6/10/2010 |
1 | p132 | #3: ADD row and put in last 2 columns | No signal change for 6 months 0 | 6/10/2010 |
1 | p132 | #4: Less than 25% and turns higher | Less than 30% and turns higher | 6/10/2010 |
1 | p132 | #4: ADD row and put in last 2 columns | No signal change for 6 months 0 | 6/10/2010 |
1 | p132 | #6: ADD row and put in last 2 columns | No signal change for 6 months 0 | 6/10/2010 |
1 | p132 | #8: If MACD does not confirm NASI crossover 0 | Delete. | 6/10/2010 |
1 | p133 | Add Sidebar. | Guidance in Effective Use of the Dashboard The use of the Dashboard may seem overly complex, but on the contrary it is extremely easy to use once you get used to it. It typically takes me five minutes to review the dashboard. Heres how to accomplish that: 1. Bring up http:// stockcharts.com for indicators except #6, which is obtained separately at http://www.aaii.com/ sentimentsurvey/. 2. For each indicator key in the respective ticker symbol. They are in order: $NYA50R;$COMPQ;$NYHL;$BPNYA$SPX$NASI 3. Follow the instructions on pages 126-131 to get the exact parameters you need. 4. You can keep the first stockcharts screen up after you finish viewing it and just key in the next symbol and change any parameters as necessary. After a short time, youll be able to do this very fast. 5. Remember that #3, #4 and #6 need to be changed to 0, if six months have passed without a change in signal. On the exact day six months later change the value to 0. Of course, if the indicator gave another signal in the same direction as the original signal just extend the time forward another six months. 6. Keep your Dashboard on a spreadsheet or on graph paper with the indicators numbered on the left side and the dates across the top. This way you can easily tally the composite score for each day when there is a change. Enter a +1, -1 or 0 when there is a signal change. Alternatively, go to my blog on my website, www.buydonthold.com, to see the Dashboard there. 7. You may want to copy page 132 to keep handy for ready-reference. |
6/10/2010 |
1 | p190 | Similarly, if the composite signal is 3 or worse, you should sell all existing positions. | Similarly, if the composite signal is 3 or worse, you should sell all existing equities. | 6/10/2010 |
1 | p190-191 | Table 8.1 #3, 4. and 6. ADD row put in last 2 columns | No signal change for 6 months 0 | 6/10/2010 |
1 | p191 | #4: Less than 25% and turns higher | #4: Less than 30% and turns higher | 6/10/2010 |
1 | p191 | Table 8.1 #8 If MACD does not confirm NASI crossover 0 | Delete. | 6/10/2010 |
1 | p191 | 2. Invest 25% of your cash with a +3 reading, then 25% for each additional positive reading. This approach gets you in the market more slowly but involves less risk than the first choice. 3. Invest 10% of your cash with a +3 reading and an additional 10% for each additional positive reading, except that when +7 ... |
2. Invest 80% of your cash with a +3 reading, then 15% for each additional positive reading. This approach gets you in the market more slowly but involves less risk than the first choice. 3. Invest 25% of your cash with a +3 reading and an additional 20% for each additional positive reading, except that when +7 ... |
6/10/2010 |
1 | p192 | ... is reached, you invest the remaining 60% of your funds, as detailed here: 10% with a +3 10% with a +4 10% with a +5 10% with a +6 60% with a +7 |
is reached, you invest the remaining 15% of your funds, as detailed here: 25% with a +3 20% with a +4 20% with a +5 20% with a +6 15% with a +7 |
6/10/2010 |
1 | p192 | This last approach is the most conservative, since you have waited until almost the last signal is triggered to invest the remaining 60% of your money. Also, you may not get to a +8 signal so that level should not be necessary to be reached to be fully invested. You may even want to change the entry strategy to invest your last 60% when there is a +6 or +5 reading, because that score will be attainable the vast majority of the time. |
This is a conservative approach, in which you spread your money out in order to wait for additional confirming positive signals. Also, you may not get to a +8 signal so that level should not be necessary to be reached to be fully invested. Because the dashboard may never reach levels of +7 or +8, you may want to have all you available funds invested at a reading of +5 or + 6 to become fully invested. | 6/10/2010 |
1 | p192 | Sell All Positions on a Dashboard Sell Signal On the other hand, if a dashboard sell signal (3) is given for the first time (after a prior neutral or buy signal), then you should sell all portfolio positions. |
Sell All Equity Positions on a Dashboard Sell Signal On the other hand, if a dashboard sell signal (3) is given for the first time (after a prior neutral or buy signal), then you should sell all equity positions. |
6/10/2010 |
1 | p193 | #4. Since the 25% marker was penetrated to the downside and then hit 14% before turning up, it gets a score of +1. | Since the 30% marker was penetrated to the downside and then hit 14% before turning up, it gets a score of +1. | 6/10/2010 |
1 | p194 | Switch positions of #5 and #6. | fixed | 6/10/2010 |
1 | p195 | One investing approach that makes sense, mentioned previously, is to invest 25% of your available funds when the +3 reading is reached, and then subsequently add 25% as each of the next three indicators triggers a buy signal. | One investing approach that makes sense, mentioned previously, is to invest 70% of your available funds when the +3 reading is reached, and then subsequently add 10% as each of the next three indicators triggers a buy signal. | 6/10/2010 |
1 | p203 | If you have any questions or comments, please contact me at lesmasonson@yahoo. com, and Ill respond accordingly. |
If you have any questions or comments, please contact me at les@buyandhold. com, and Ill respond accordingly. |
6/10/2010 |
1 | p204 | Looking at Figure 5.5, we can see that the index crossed the moving average to the downside in early November 2007. That gets a 1 score because it pierced the moving average line to the downside. | Looking at Figure 5.5, we can see that the index crossed the moving average to the downside in mid-September 2007. That gets a +1 score because it pierced the moving average line to the downside. | 6/10/2010 |
1 | p205 | This indicator did not have a reading of 25% to 30% at any time in 2007, so there is no score given for this date. It is considered neutral. If you want to use a score then it should be recorded as 0. | This indicator did have a reading of 25%+ in July 2007, so it is given a score of +1. | 6/10/2010 |
1 | p205 | Switch positions of #5 and #6. | fixed | 6/10/2010 |
1 | p206 | By mid-October 2007, six indicators had a score of 1, and two indicators were neutral. In total, the dashboard score was 6. | By mid-October 2007, five indicators had a score of 1, and two indicators were positive, and one indicator was neutral. In total, the dashboard score was 3. | 6/10/2010 |