“Time the Bottom” Nonsense

Read the following excerpt from Investors Business Daily:

“You hear it so much, it’s almost become the naysayer’s mantra: “You can’t time the market.” Short and punchy? Sure. And also completely false. The market’s price-and-volume action gives clear signs of the market’s direction. A follow-through day gives you the biggest of head starts — timing the market’s bottom. A follow-through occurs at the earliest stages of a fledgling rally. After a significant market correction, the market will look to regain its footing. Any up day then counts as Day 1 of an attempted rally. The next two sessions, Days 2 and 3, don’t need to show much in the way of gains. As long as they don’t undercut Day 1’s low, the rally remains intact. For a follow-through to occur, you want it to land between Day 4 and Day 7 of the attempted rally. On any one of those days, you’re looking for one or more of the major indexes — the Nasdaq, S&P 500 or Dow — to rise 1.7% or more in higher volume than the previous day.”
Jonah Keri, Investor’s Business Daily
All Major Bull Rallies Begin With A Follow-Through Day
Tuesday July 27, 7:00 pm ET

You will never hear a trend follower speak like this. If someone tells you he can “time the bottom”, reach and check to see if you still have your wallet.

You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.