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Buy/Sell Model

The buy/sell model is used in conjunction with the technical model and the valuation model to identify high-probability trade opportunities in the S&P 500 on both the long and short sides of the stock market.  Whenever the technical analysis and valuation models forebode trouble ahead, we look to the buy/sell model for a SELL trigger.  Conversely, whenever the technical analysis and valuation models foresee 'clear sailing', we look to the buy/sell model for a BUY trigger.  The signals produced by the buy/sell model are thus dubbed High-Integrity Trade Signals (HITS).  

The chart below depicts the buy and sell signals triggered by the model from June 4, 2019 through March 23, 2020.  Needless to say, the timeliness of the triggers is quite impressive, hence the HITS acronym.  Also note the February 21, 2019 SELL signal;  It was triggered on the back of major red flags raised by the technical analysis and valuation models.  See the June 2019 forecast to appreciate the timeliness of this signal.