DARK GREEN (GO) – Bullish: High probability of increase;
LIGHT GREEN (get ready to go) – Neutral Bullish: Mild positive – some probability of increase or flat;
PINK (get ready to stop) – Neutral Bearish: Mild negative – some probability of decline or flat; and
DARK RED (STOP) – Bearish: High probability of decline.
FAB Indicator Testing
Confidence in my views will come from your level of confidence in the FAB Indicator. Using signal tests, we gauged the probability of gains after a 1-year period (52 weeks) once the FAB triggered a BULLISH view on weekly charts of the SPDR S&P 500 ETF Trust (SPY) compared to the S&P 500 Index as the benchmark. Note that a probability of gain above 60% provides strong confidence in an indicator’s ability to provide solid triggers. Over the 13-year test period, there were 139 times that FAB triggered a BULLISH view, resulting in a probability of gain of 80.6% 52-weeks later with median returns of 7.4% compared to the index’s 1.2%. Details available upon request.
I provide weekly charts on this website. Investors should determine which time horizon is most important to them for their chosen market or investment before choosing the correct chart timeframe. Generally, weekly charts are for time horizons of several months.
I also include a relative comparison of selected markets over the past month based on daily prices. Note that the assets and/or ETFs selected were chosen to facilitate the practice of intermarket analysis. As all global markets are linked, analysis of any one market should include analysis of the others.
By clicking on my name above, you’ll be taken to the list of all my previously published charts. For details about any of the charts and analysis, my contact information can be found on my website at: http://wealthlifecapital.com/