Monkey Throw Dart: Predictability on Planet Stochastic

Tuesday, July 13, 2010

Predictability on Planet Stochastic

planetoftheapes

If an alien from another planet were to land in the jungle, (let's call him Colonel George Taylor), and he had to earn some cash to rebuild his space ship, I would simply hand him any stochastic oscillator chart of the major indices. I would tell him to buy when the line starts to move above 20 (the over-sold signal) and sell short when the line crosses below the 80 (the over-bought signal).

I'm sure Colonel Taylor's response after testing this method for a few months would be, "Wow, following indicators are so much more reliable on your planet!" If Moses, I mean Colonel Taylor, had crash landed in early May he would have seen how easy this really is.

stochastics rule

While stochastic oscillator worship may be profitable now, reality may soon set in. Hopefully you will not be caught on the wrong side when it does. Of course, maybe this 'low hanging fruit' will continue to hang low for a while.

Hmmmm... Now, if I could only convince the long-sighted CMI 2.0 to follow the oscillating line during times such as these.


heston and the beautiful dr zira
It's been 42 years but I still can't believe the beautiful Dr. Zira had to swap spit with this guy.