This is from George, I can't even tell you how long he's been a member because he's not only been here since the very start, but he was over at Trade-Guild for a year or two before that.
Any way, I consider myself a lifelong student of the market, I try to learn something new and usually do, just about every day. George has told me about this correlation before and sent me the charts, but I never back-tested it to see, I can say this correlation has worked pretty well at some major tops, it doesn't seem to work as well as a bottom finder.
The Dow vs GE...
Check the divergences. When GE is negative vs the Dow, it tends to be right, it actually makes sense if you really think about it from an institutional investor's stand point. Here's a hint, think about the size of GE and the size of institutional positions in GE.
No comments:
Post a Comment