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Strategies & Market Trends : Point and Figure Charting

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From: AdvocatusDiaboli1/8/2021 6:58:41 PM
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Lou Weed

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Following is my favorite P&F Chart of the SPX at close of business for the week. I like the 35 point size box because it gives me the view from 30,000 feet.
I reiterate that I am not a trader but rather consider myself a long term investor. As I have previously mentioned direct commercial property investments make up the larger part of my portfolio which I balance with Stocks and Bonds using a variable 72-25% ratio. I aim to be invested as much as possible in stocks but with caution.

Experts have been calling the end of this BULL market for years and if one is foolish enough to let all the doomsayers predictions influence your investing then you have missed out on the amazing gains we have had particularly over the last 4 years. Of course it will crash. Of course its overvalued. Of course we are seeing a bubble.

We are obviously moving closer to a serious crash of this market but some of the best gains are to be had in the final stages as irrational exuberance runs amok.

So what is your plan. When will you strap on the chute and when will you jump?

Now my Model coincidentally aligns quite a bit with the 35VB P&F Chart. Problem is unless we get a column of three Os then another column of Xs before the crash then the current SELL level of 3500 is in play and we would burn 300 points at current level before the SELL happens. That means taking an 8% haircut before I jump.
I am hoping of course for a minor correction of around 105pts (3 x 35) to put in that row of Os and raise the SELL signal level.

Anyway that is my plan. Tell us yours or I will assume you do not have one.


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