If you are following the market closely, you know that the S&P 500, the Nasdaq 100, and the Russell 2000 Indices have all hit new "All-Time Highs" last week (and the Dow is close).
Remember, rising earnings result in rising stock market prices (almost always), and geopolitical "news", etc, etc, etc, and other "junk" usually results simply in "interruptions". All of our MIPS models strive to avoid trading these "interruptions", mainly to prevent getting whipsawed.
The latest version of the MIPS models ("Blaster Series" in 1Q'16) has multiple new algorithms that have improved this to a great degree. For example, with "relativity" built in to the models, a 5-7% drop in a market that is up 20-24% over the last 12-15 months is not nearly as damaging as a drop of 3-4% in a market that is up only 6-8% over its last 9-15 months.
So, now the bull run is STILL gaining strength (see graphs below). Of course, at the heights that we are at now, a "reversal" could come at any time, sometimes seemingly for no reason at all.
That is why we need a comprehensive quantitative model like MIPS that looks at and calculates changes in the market trend 1,000 times faster and better than we can. Stay tuned...
Paul Distefano, PhD
CEO / Founder
MIPS Timing Systems, LLC