Market Dynamics 

Relative Strength In A Long-Term Point & Figure Chart Format

 

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Discover The Amazing Power Of Point & Figure Charting

Mutual Funds

Managing mutual funds with point and figure charts of relative strength

 

Easy - Effective - Suitable for all investors

  • Point and figure charts have been used since before the first open-ended mutual fund opened for business in 1928.

  • The point and figure method was actively used at the time of World War I.

  • Relative strength on stocks developed shortly after the introduction of business computers in the 1950's.

  • It was natural to apply point and figure techniques to applications of relative strength.

 

The Market Dynamics relative strength, point and figure charting system

 now applies the techniques to mutual funds


 

An example of a mutual fund with strong relative strength follows:

  • This chart covers four years of data

  • The strong up trend is shown over the past two years.

  •  The relative strength remained above the 45-degree Bullish Support Line during the advance

  •  This is a picture of a big winner in the mutual fund sector.


example of a poorly performing mutual fund.

  • This fund was one of the big losers in the mutual fund sector.

  • The relative strength remained stubbornly below the 45-degree Bearish Resistance Line

  •  Long-term investors needed to sell this fund and avoid it thereafter

 


 

Why is the downtrend shown in red?

 

  •  The Market Dynamics mutual fund system incorporates a unique feature called a Performance Alarm

  •  That turns red when the relative strength of that fund becomes unacceptable.

  •  The computer program tests for poor performance and does not require a subjective  analysis on the part of the user.

  •  It is clear that long-term investors should not buy and should not hold mutual funds that are under a Performance Alarm.


 

The Market Dynamics Mutual Fund Service 

§        The system is updated daily by an email

§        The system covers almost 2500 mutual funds of all types.

§        Relative strength is calculated using the Vanguard S&P 500 index fund as the benchmark

§        The software is sent to users on a DVD and the system is installed on the users PC

§        The daily updates include various computer screens based on relative strength point and figure charts

§        Relative strength screens of mutual funds ranked by relative strength

¨      Best relative strength over the past year,

¨      Best relative strength over the past three months

¨      Best relative strength over the past month

¨      Worst relative strength over the past three months

§        Lists of funds that represent good investment opportunity (buy ideas)

¨      Funds with the largest jump in relative strength rank

¨      Funds with a column of ten Xs straight up

¨      Funds with a triple top buy signals

¨      Funds with a triple top buy signal and on a pullback

§        Funds with poor investment characteristics (sell ideas)

¨      Funds with a triple bottom sell signal

¨      Funds with a triple bottom sell signal and a retracement back up.

§        Portfolio master lists

¨      Users can set up their own watch lists of funds for regular review

¨      Users can set up a list of their portfolio of fund investments for regular review.

§        The Market Dynamics fund service includes all the Fidelity Sel Funds

§        Many of the Vanguard funds are included

§        Many country funds are included

§        Many sector funds are included that cover mid-cap, small-cap, micro-cap, and other specialized sectors.

§        The system allows users to create and save pictures of the fund charts for use in emails and hardcopy reports

§        Users can request the addition of a fund at any time.

§        The Performance Alarm is an automatic feature of Market Dynamics Mutual Fund System

¨     The chart turns red when the Performance Alarm turns on

¨     The Performance Alarm is produced automatically by the computer program

¨     The Performance Alarm is a warning that the performance of the fund has turned down in a long-term sense.

§        The system allows the application of bullish support lines and bearish resistance lines to any chart

§        The visual presentation of the charts is so powerful that the user does not have to be an accomplished chartist to benefit from the service. The charts are very hard to misinterpret.

 

 


Athletic coaching, business management and investment management

  • As an athletic coach, why keep a player on the team who can't perform?

  • As a business manager, why retain an employee who can't or won't get the job done?

  • As an investor, why hold a fund that can't perform as well as the Vanguard S&P 500 index fund?

  • An investor would be better off to own the Vanguard S&P 500 index fund rather than a fund that performs poorly against that benchmark.


For those new to point and figure charting, there is an extensive

free .pdf tutorial available for download from this web site.

Click on the Tutorial tab below

 

The Market Dynamics Mutual Fund Service is currently included along with a subscription to the Market Dynamics Stock Service.

 

A free trial subscription for three months is available to all investors in the U.S., Canada and the U.K.

Send an email to clayallen@msn with

"request mutual fund free trial"  in the subject line.

 

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