Morgan Stanleys 5 indicators are green!

Matt

Matt

Administrator
Staff member


Holy smokes batman!

Morgan Stanley announced that their 5 key timing indicators are a flashing green light to investors (not sure if that is more exciting, or more risky than a steady green light or both..) they call it a ‘full house’, from poker, that game where you gamble.

Apparently, they have a set of indicators that help predict the future, they are:

  • CMTI
  • Risk
  • Fundamentals
  • Composite Valuation Indicator
  • Capitulation Index
But what about emotion?


Graham Secker, the bank’s chief European equity strategist, said the sell-off over recent weeks is largely driven by emotion and has little to do with the underlying outlook for the world economy.
​

Me, I’m kinda baffled. They have 5 fancy metrics, but ultimately believe that the recent sell off was due to emotion… shouldn’t the people gazing into crystal balls be worried about emotion going forward if that is the thing that will impact prices? How does knowing that CMTI is now in Capricorn make you feel? Warm and cozy, ready to go ‘all in’?

My advice… get a long term plan, and try to filter out all this noise.

More on this at FTAlphaville and The Telegraph


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MarkD

MarkD

Level 2 Member
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
 
MnWolf

MnWolf

Level 2 Member
Matt,

I'm not sure that the Full House signal is a poker reference. A full house poker reference would be three of one and two of the other, right? I maintain that it is a television reference, giving you only the guarantee that wackiness will ensue.
 
pstravels

pstravels

Level 2 Member
Woulda made sense for them to call it a flush and have all the indicators show up as green playing cards. But w/e...I have a friend who has been trying to gamble on the volatility...apparently doing somewhat ok. He's still negative following the initial drop...but hoping to return some losses over the next few weeks.
 
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