As the market pulls back, our ratio has taught us for when to bet on a swift recovery. Our ratio is pulling back to near oversold levels and we are prepared for a large move to the upside once we reach it.
You can read about how accurate these signals have been in the past by clicking here. Look at the forward returns for the market once these signals trigger on pages 7 & 8. We do admit that our writing has gotten much better since this white paper was written!