I've decided to stay over the weekend in the I-fund. Here is the revised post of the EbbChart web page:
This global sell-off is a natural progression of the whole subprime mess and we're just going to have to get used to the volatility that comes with it. At any rate, I've updated the ebbchart for next Monday and we have pattern 8 on tap. It's sucess rate for predicting down days is not so good (5/12 or .42%). It's one of the weakest of the safe haven patterns and hasn't made a turnaround in almost eight months, so I've decided to play it in contrarian mode. Check the complete stat and description for each ebbchart pattern way down below.
The system is in the I-fund today and shall remain there over the weekend. Good luck all!
Here is the updated tally for each pattern (1-8) on the ebbchart from January 16 through Aug. 09, 2007. The tally for patterns 1, 2, 4 and 7 shows the number of up days and total gains when using the C, S or I-fund. The tally for patterns 3, 5, 6 and 8 shows the number of down days and total loss saved for the C, S or I-fund. The ebbchart has two sets of patterns: One set (1, 2, 4 and 7) goes to stocks (I-fund) and the other set (3, 5, 6 and 8) goes to safe haven (G/F).
Next Monday's pattern (two reds/safe haven, but playing it as stocks):
-- Pattern 8: Down days (5/12), total missed gain (+0.62%).
-- It's one of the weaker safe haven patterns, and I've decided to play it in contrarian mode.
Today's pattern (three reds/safe haven, but played as stocks):
-- Pattern 5: Down days (4/12), total missed gain (+2.47%).
-- Weakest pattern going to safe haven. Playing in contrarian mode as explained below.
-- Last played in contrarian mode successfully (+1.06%).
Yesterday's pattern (two reds/safe haven):
-- Pattern 3: I-fund down (-2.79%); S-fund down (-1.95%); C-fund down (-2.93%) for the day.
-- Down days (8/18 to 9/19), total loss saved (-3.75% to -6.44%). Saved a bundle.
Patterns going to stocks (two or more greens):
-- Pattern 1: Up days (20/31), total gain (+3.85%).
-- Pattern 2: Up days (12/16), total gain (+4.23%).
-- Pattern 4: Up days (14/21), total gain (+6.94%).
Patterns going to safe haven (two or more reds):
-- Pattern 3: Down days (9/19), total loss saved (-6.44%) -- the lower the %, the more saved.
-- Pattern 6: Down days (11/18), total loss saved (-0.99%) -- the lower the %, the more saved.
Patterns that are weak (not working so far):
-- Patterns 5, 7 and 8 had missed gains and losses, but it's still too early to make any judgment.
-- If these patterns remain weak, contrarian plays* in the future might be worth a try.
Contrarian plays* (started on July 30):
-- Pattern 5: Up days (1/1), total gain (+1.06%). Safe haven pattern played as a stock pattern.
-- Patterns 5 is the weakest of the safe haven patterns; pattern 7 is the weakest of the stock patterns.
-- Pattern 8 will also be played in contrarian mode. Being nimble and taking what the system presents.
More stats to ponder:
-- I-fund total from Jan.16 thru Aug. 09: Up days (84/144 or .58%), down days (58/144 or .40%).
-- On days with patterns 1, 2, 4 or 7: Up days (52/82 or .63%), total gain (+12.03%).
-- On days with patterns 3, 5, 6 or 8: Down days (29/62 or .47%), total loss saved (-4.49%).
-- The ebbchart increased our probability of catching up days (+.05%) and down days (+.07%).
-- Our exposure to stocks was also low at only 57% (82/144 in stocks and 62/144 in safe haven).
-- On top of the total gain (+12.03%), we also get to pick up some G-penny along the way.
Great to know the ebbtracker's generated patterns for the ebbchart are in tune with the market. If both sets of patterns produced good gains or the results were reversed, then it's time to go back to the drawing board.
Note: A day with no gain or loss for a fund won't be counted on the pattern tally.
- ebb