Model update for today's market (7/25)

smallwonder said: "Today's buy model number is -0.28 (was -1.2 yesterday), and the sell model number is 1.56 (was 0.85 yesterday). NO SELL SIGNAL FOR TODAY (a qualified sell signal requires negative sell model number for two consecutive days, and one of them less than -1.2). A few of viewers asked about the performance of the model compared with a buy and hold strategy. Here is the statistics since the inception of the model (7/2/2003). On July 2nd, 2003, SP500 closed at 993.76, and today, it is 1229.03, an increase of 23.67%. During this period, there were 9 buy signals (If multi buy (sell) signal were generated before a sell (buy) signal, only the first is counted as a buy (sell) signal), and 8 sell signals (the nineth is still waiting). If one buys the SP500 at the close after two days of each buy signal, and hold until two days after the issurance of the sell signal, one will earn 43.55%. So the model is better than the buy and hold strategy by about 20% over this roughly 2 year period. Since the model has more than 1/3 of the time in the sideline, the risk adjusted return will even be higher."