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Aug 7, 2007 No MagicT has nothing to do with mushrooms, it's short for "Magic Trough". It is a trading signal I developed as part of my TrendSensor trading system. It can identify very early when panic selling is exhausted and a new rally is kicking off. It catches the end of the nastiest, most precipitous declines and delivers a buy signal early in the new, strong rally that usually follows. In case you're interested in the technical stuff, MagicT combines times series analysis of volatility with a statistical measure of an overly prolonged trend, and simple chart patterns to confirm the reversal back up. The chart at the link below of the DAX Index (Germany) covers 14 years and shows the MagicT in action (all those buy signals in all those troughs): www.trendsensor.com/Charts/DAX-LT-MagicT.png The first buy signal in 2002 ain't great, but the other 15 really nail the lows in the DAX, including most of the precipitous slides south. I chose to show the DAX because it's primed to trigger a MagicT signal again soon, and it has more historical signals than most markets - 16 in 14 years. Many markets only serve up a MagicT buy signal once every two or three years. So the fact that right now I can identify 14 global stock markets or sectors that are primed to trigger a MagicT buy signal is remarkable and bullish. A few of these may not fulfill all the signal requirements within the time frame allowed, but there are 10 markets that appear very likely to throw MagicT buy signals within the next week or three. These 10 markets are evenly split between Europe and USA: * Europe: ATX (Austria), BFX (Belgium), CAC40 (France), DAX (Germany) and FTSE100 (UK). * USA: BIX (S&P Banking Sector Index), HGX (Philadelphia Housing Sector Index), NYA (NY Composite), SPX (S&P 500) and SXX (Philadelphia Semiconductor Sector). Yes, when MagicT rides into town in the next few days it should signal a period of blissful trading for all the bulls out there. Enjoy it while you can - it may be the last good rally you see for a long time! All my trading signal clients will be onto this rare opportunity - and you're invited check out my free 5 week trial offer: get on board before MagicT rides into town!
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Murray Nickel is a mathematician, statistician, and professional trend trader. He offers a free trial of trading signals for market indices and index ETFs, spot Forex, and spot Gold. He also mentors trend traders aiming to succeed at trading global markets. You can get a unique content version of this article.
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