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As of Friday, October 10, 2008
Using & Interpreting the Strategy Index The Strategy Index is our own proprietary "overbought/oversold" indicator that requires interpretation. Generally speaking an overbought or "Sell signal" is achieved when the Index is in the +70 to +100 area and then breaks below this area. Conversely an oversold or a "Buy signal" is given when the Index is below the -70 to -100 and then breaks above this area. There are three Indexes: Short Term, Intermediate Term and Long Term. These three Indexes can be used seperately or in conjunction with one another. The Short Term Index is the most sensitive, followed by the Intermediate Term Index, with the least sensitive being the Long Term Index. During a Strong Bull Market the Long Term and the Intermediate Term Indexes may stay overbought for a long period with only the more sensitive Short Term Index giving "buy" and "Sell" points. A Strong Bear Market would see the Long and Intermediate Index stay oversold. Interpretation competence grows with experience. Our interpretation is usually given in the Technical Market Comments section of our website. In addition, our office has the Strategy Index on individual stocks and the Dow, Nasdaq, S & P etc. which assists our interpretation of the "general market" trend. Calculations are now made via computer. However, we have data going back to the 1950's when it was calculated by hand. Charlotte Birkelbach at 90 still does the calculations by hand daily, just in case those new fangled computers dont work. |
ADDITIONAL INFORMATION
IS AVAILABLE UPON REQUEST
This report has been prepared from original sources and data we believe reliable
but make no representations as to the accuracy or completeness. Birkelbach Investment
Securities, Inc., its affiliates and subsidiaries and/or their officers and
employees may from time to time acquire, hold or sell a position in the securities
discussed in this report, we may act as principal for our own account or as
agent for both the buyer and the seller.
Past performance is no guarantee of future success. Also, while the above suggested
prices are as listed on our reports and the sell dates and prices are as issued
by our research department, our brokers operate independently and as each individual
client has a unique risk tolerance level, the above list should not be deemed
as a representation of our clients purchases and sales. Some of our suggestions
are volatile and speculative. Therefore, these stocks are only for those investors
willing to assume risk. In addition, there may not be enough information available
in these reports to make an informed decision. Upon request, we will supply
additional information. Purchases should not be made until enough information
is obtained and risks understood.
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