Stock Investing Blog


This is the Site Blog for Mechanical-Investing.com where you will find:
      
  • Any New or Updated Page made to the website including new articles, reviews...

      
  • Market Timing Buy/Sell signals:
    I follow the Best 6 Months strategy (November to April) enhanced with MACD (Moving Average Convergence Divergence) crossovers. This simple system is one of the most efficient timing model and was out of the market during the devastating Bear of October 2008. Check te Market Timing menu for more info.



Apr 22, 2009, Market Timing - MACD Sell signal

As of the close of April 22nd, both MACD of the S&P500 and the Dow are negative.

The Dow triggered a signal on the 21st of April, the S&P500 on the 22nd of April.

So at the open on 23rd April, it is time to sell all holdings and stay on the side waiting for a MACD Buy signal from mid October 2009.


Feb 14, 2009, Market Timing Performances - Update

With 2008 closed, we clocked another 4-year US presidential cycle and it was time to update to market timing performances.

The Best 6 Months ("Sell in May and Go away") and the 50-Day/200-Day moving average crossovers systems avoided the 2008 Bear Market.

The other systems were in Buy mode and could not avoid the severe losses in October 2008: obviously, they did not fare worse than Buy and Hold.

The table uses the S&P500 excluding dividends from 1950 to 2008.

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Feb 9, 2009, Quantitative strategies for achieving alpha - Book Review

A recent book that provides backtest results of more than a 100 mechanical models over 20 years timeframe.

The author (Richard Tortoriello) also includes 21 stock screens (with backtest results) that you can build with a stock screener.

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Jan 31, 2009, Cheap Stock Screeners Review - Updated -

I updated the page on cheap stock screeners.

You may wonder why should you pay for a screening tool when there are many free ones online.

In fact, the screeners reviewed allow you to build more complex strategies that would be difficult (often impossible) to build with a free tool.

The stock screeners featured here are all reasonably cheap: from 58$/year for SmartMoney Select to 227$/year for AAII Stock Investor Pro.

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Jan 5, 2009, Dow Under Dogs

An alternative to the Dogs of the Dow focusing on price appreciation rather than Dividend Yield.

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Jan 5, 2009, Tiny Titans

Reasonable Runaways applied to small micro caps.

One of the best strategy from What Works on Wall Street if you don't mind high volatility.

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Jan 1, 2009, Investment Strategy for 2009

2008 was a year to forget with losses of 35% to 45% for every market.

The recommended portfolio of Cornerstone Growth and Magic Formula Investing stocks underperformed due to its exposure to small cap growth stocks: the worst performing stocks in 2008.

What strategy should be favored in 2009 ? Check our Investment Strategy for 2009 for more details.

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