June 11, 2012 at 10:46 PM | written by Chip Anderson
Way, way, way, WAY back in the early days of my Internet career, I maintained a mailing list called "Chip's Charts" (anyone else remember? no? lol!) In that list, I tried to keep people up-to-date with the Sector Rotation model of the business cycle. It was basicly the same idea that underlies our current S&P Sector PerfChart tool.
As you can imagine, that means that I am thrilled when I find other people using those same concepts in their own charts just like David Calloway is doing in his brand new Public ChartList. Here's a sample:
As you can see, David has taken the time to explain his ideas clearly in comments on the chart including his current take on where things might be in the business cycle. This is great stuff and can help you determine which sectors and industries might do well in the coming weeks and months. Be sure to vote for David's list if you enjoy this kind of analysis and consider adding it to your "Followed" lists if you are a StockCharts member.
- Chip
June 05, 2012 at 2:12 PM | written by Chip Anderson
Binary systems are very simple. Basically, you select a series of technical signals and give each signal a value of +1 (bullish) or -1 (bearish). For each chart, you then add up all of the values to get a final "score." You then look to see if the score is above (or below) a preset threshold.
Sean Gallagher's short list is a great example of a binary system in action. While it only has 2 charts in it (currently), you can see exactly how Sean is scoring things and drawing his conclusions. His $SPX chart includes the Dow Transports and Dow Utilities indexes also with things like the Advance-Decline line to come up with an overall US stock market score (which is currently bearish by the way). His second chart has similar information for the Canadian market.
Short and to-the-point, "AlphaDow Barometer Lite" shows how anyone can create a simple system for comprehensive, objective market analysis.
- Chip
