General Observations
The stock market is likely to be on firmer footing when strength in the daily- and, weekly-based advance-decline lines confirm strength in the various indices that reflect different sectors of the stock market. In other words, new highs in indice such as the Standard & Poor’s 500 Index should be confirmed by new highs in [...]
Pre-Bear Market Comparisons
It is interesting to compare the results of the 1971-2000 period to the 1971-2004 period, which includes the bear market of 2000-2002. Using the 90% (buy) and 80% (sell) parameters between 1971 and 2000 would have produced rates of return while invested of 34% and maximum drawdowns of only 8.6%, with 72% of trades profitable. [...]