Stock Market Investors Companion

This book is unique and different from other books on the subject matter. It makes the investing process foolproof. Buy and sell signals generated by the methodology presented in this book make the investing process mechanical without any attachment or emotional feeling for the stock market. In general, it tells investors when to get in the stock market and when to step aside. It removes the damaging effect of emotions and feelings from the investing process.... ...The bear markets of 2000-2002 (market bottom at SPX = 800.58, week ending 10/4/02) and 2008-2009 (market bottom at SPX = 683.38, week ending 3/6/09) prove that timing the stock market is crucial to making money. Refer to S&P 500 index charts included in Section 605 below. This affirms that the sell signals generated by the methodology are timely.... ...This book presents a system, a methodology that can keep the investors in the market for enough time to build profits; that can alert investors when to cut losses; and that can guard against recommendations, opinions, etc. expressed by others. Realizing that no system can be perfect, a need for such a system cannot be over-emphasized... ...The key to winning the market game is to completely shut down the thinking machine and rely on the findings based on the historical data it is the key to making money in the stock market. For a moment think what would have happened if we did not sell in 2000 and 2008 as per the sell signals generated by the methodology.

Table of Contents

WHY THIS BOOK xvii
INTRODUCTION xxvi
NOMENCLATURESxxv

CHAPTER 1:TECHNICAL INDICATORS & SIGNALS (Making Investing Scientific)
100 Introduction To Market Signals 1-2
A) What Are Signals 1-2
B) How Signals Can Help Investors 1-2
C) How To Get Market Signals 1-3
101 Market Movement Zones 1-3
102 About Long-Term Market Condition Indicators 1-4
103 Long-Term Market Condition Indicator-LT1 1-11
104 Long-Term Market Condition Indicator-LT2 1-22
105 Long-Term Market Condition Indicator-LT3 1-25
106 Putting It All Together 1-44
(A) Determining Buy & Sell Actions 1-44
(B) Market Declines During The Bull Phase 1-47
107 Use Of Other Indexes 1-50
108 Market Mood Indicators 1-51
(A) Overview 1-51
(B) Market Mood Indicators 1-53
109 Sharp Declines In The Market 1-57
110 Sharp Decline Weeks & The Market 1-59

CHAPTER 2: COLLECTION & ANALYSIS OF MARKET DATA
200 Introduction To Market Data 2-2
201 Market Indexes 2-2
202 Market Advance/Decline Totals 2-3
203 Market Rate Of Movement 2-4
(A) General 2-4
(B) DJIA 30-Week Rate 2-4
(C) DJIA 40-Week Rate 2-5
204 Market Movement Zones 2-5

CHAPTER 3: STOCKS, MUTUAL FUNDS & OPTIONS
301 Stocks Selection & Evaluation
(A) General 3-2
(B) Fine-Tuning the Selection 3-3
(C) Time-To-Act 3-3
(D) Buying Consideration 3-7
(E) Selling Consideration 3-8
302 Stocks Buy-Sell Methodology 3-10
(A) Introduction to Buy-Sell Methodology 3-10
(B) Caution about Buy-Sell Methodology 3-11
(C) Buy Methodology 3-12
(D) Sell Methodology 3-17
(E) Exercising Buy or Sell Action 3-21
(F) How Not-To Miss a Signal 3-25
(G) Commentary 3-26
303 Mutual Funds 3-27
(A) Introduction 3-27
(B) Why Mutual Funds 3-27
(C) Selection Hints 3-27
(D) Investment Portfolio 3-34
(E) Monitoring The Portfolio 3-35
(F) Buying Consideration 3-35
(G) Selling Consideration 3-36
304 Options A Special Situation 3-37
(A) Introduction 3-37
(B) Option-Trading Plan
3-40
(C) Option-Trading Tips
3-41
305 Tracking The Investment 3-45
(A) General 3-45
(B) Investment Performance & Record Keeper 3-46

CHAPTER 4: STRATEGIC TRADING DISCIPLINES
401 Think Like A Wiseman 4-2
402 Be Like A Traffic Eng