The value of stock market timing




Floyd, Benjamin Joseph

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The purpose of this paper is to show that it is possible to protect capital from risk of loss and at the same time earn excess returns from the stock market through market timing. A Market Model consisting of four timing indicators will be developed to give buy and sell signals that attempt to beat the market. The four indicators used in the Market Model are the Bullish Consensus, the Open 10 CBOE Put/Call Ratio, the 10 Day Relative Strength Index, and the Open 10 Trin. These are intermediate term indicators, meaning that their value is in predicting changes in intermediate term trends which may last from a month to a year. A detailed description of each indicator and a review of their performance over the past four years is covered in the next several chapters