A simple way that you can become your own investment advisor using the trend following plan developed by Dick Fabian.
Step 2, Know The Current Trends
Look at the "Current Info" page for links to charts showing the current trends for the domestic and international market indices.
As trend followers, we let the market tell us when it is time to invest and when it is time to step aside, sell everything and move to the safety of money market funds or cash.
The market is always right, it doesn't care what we think or what we want. It is going to do what it is going to do regardless of why. If you listen, it will tell you what to do.
Knowing what the current trends are will generate your BUY and SELL signals.
I was taught by Dick Fabian that it is best to use two benchmark indicators to confirm your buy and sell signals. Dick had developed his own benchmark indicator called the Fabian Indicator Composite (FIC) that he used as a confirmation of the Wilshire 5000. Both of his benchmark indicators needed to move above or below the trend to generate a signal.
I use two benchmark indicators as well. I have built my own domestic composite and use it as confirmation of the Wilshire 5000.
My domestic composite is comprised of:
Wilshire 5000 (StockCharts symbol: $FTW5000)
Dow 30 Industrials (StockCharts symbol: $INDU)
NASDAQ 100 (StockCharts symbol: $NDX)
S&P500 (StockCharts symbol: $SPX)
Russell 2000 (StockCharts symbol: $RUT)
I would suggest using the Wilshire 5000 (StockCharts symbol: $FTW5000) as one of your benchmark indicators. You can use it as your only benchmark indicator if you wish.
If you choose to use a second, confirming benchmark indicator, you can create your own or try:
DJ US Broad Market (StockCharts symbol: $DJUS)
S&P1500 (StockCharts symbol: $SPSUPX)
Look around the symbol catalog at StockCharts to see what is available.
Hey...what is a benchmark? (Click Here)
CLICK HERE to open a Weekly chart for the Wilshire 5000 Index with 40WMA. You can then enter other symbols to see current trends for other indices.
I also follow the trend for international investing. I have several fund choices in my 401(k) that invest internationally. I use the same method as with domestic investing.
For the general trend of the international market, I use the MSCI EAFE index (StockCharts symbol: $MSEAFE). I have built my own international composite and use it as a confirmation of the MSCI EAFE Index.
What is MSCI EAFE? (Click Here)