All Ords humming along

The All Ords continues to chug along (and up). The XAO Indicator has now remained blue since early September 2010. Stocks have done extraordinarily well in that period - unless you are holding perennial losers like many blue chips. The big movers have been the small caps especially many "penny dreadfuls". This is what this blog is all about. Go long and hold long while the XAO Indicator is blue. When it turns red be very careful. I have tested hundreds if not thousands of indicators over many years and nothing comes close to the guidance provided by the XAO Indicator. And it makes sense. This indicator will turn blue and stay blue when the general market is rising. Most stocks (some more and some less) will rise during this period. Conversely most will fall when the indicator turns red. That's the time to either reduce your holdings or get out of the market altogether (if you wish to avoid a potential roller coaster ride). And here's another tip. Most of the big jumps in price - the takeovers, the profit upgrades, will happen when the indicator is blue. Check for yourself, just look at the dates to the left and see how your holdings performed during those periods.
Here's an updated chart.