Monday, September 1, 2008

Background

I have been investing and trading in the US equity and bond markets for over 20 years. My father introduced me to investing in the great US stock markets when I was a teenager. Together we invested in several of America's blue chip companies including General Electric, which we bought and never sold, reinvesting dividends, and allowing compound interest to work its magic! We also took a deep breath and watched the markets anxiously on October 19, 1987 and the tech bubble that broke in 2000!

Why this Blog?

I do not believe that most of us understand enough about trading or investing. Without my father's influence, I would have known very little about saving and investing. I learned a lot about economic and financial theory in my undergraduate economics and graduate level MBA classes. However, when it came to investing, the advice most of us receive is to save, get a good financial adviser/planner, and invest in your company's 401K or other program.

In 2008, with the internet, the number of investing vehicles available to go long, short, bullish, bearish or neutral, I want to ensure that my children use all the (often free) tools available to them to learn from, understand, and profit from trading and investing in global equity and bond markets.

Every Saturday, we will provide a summary of a basket of equities that we follow, and provide a brief tehnimotional rating and opinion. We will follow DIA, SPY, QQQQ, IWM, VNQ, XLF, BND, GLD, USO, MOO, EEM and FXI.

Technimotional Calculation

The mathematics behind technimotional investing is sound and tested, however the methodology for calculating the technimotional value are proprietary and will be dynamic and evolve.

The technimotional (TM) rankings are:

1 - 30 : bearish
31 - 39 : bearish/neutral
40 - 60 : neutral
61 - 70 : bullish/neutral
71 - 100 : bullish

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