Published By TradeSmith Customer Success
The Bullseye and Bearseye signals are designed to tell you when a bull or bear market may be approaching.
Both signals have predicted, with scary accuracy, major downturns and upturns after being triggered.
Previous Bear Performance
- August 1998: Down 8%
- December 2000 — October 2002: Down 38%
- August 2007 — March 2009: Down 52%
- August 2015 — February 2016: Down 3%
- October — December 2018: Down 11%
Previous Bull Performance
- January 1991 — April 1994: Up 34.45%
- May 2003 — August 2007: Up 50.71%
- July 2009 — August 2015: Up 93.26%
- April 2016 — February 2018: Up 26.05%
- March 2019 — February 2020: Up 20.36%
How Are the Signals Triggered?
For Bull Markets
The Bullseye signal can be triggered if the Health Distribution's percentage of Red Zone stocks drops below 60%, ONLY after being at or above 60% (See Figure 1).
OR
The Bullseye signal can also be triggered when the overall market triggers a Health Indicator Entry Signal (See Figure 2).
Figure 1.
Note: A Bull signal can be triggered while the overall market is still in the Health Indicator Red Zone.
Figure 2.
For Bear Markets
There are two requirements for a Bearseye signal to trigger:
The index must be in the Health Indicator Red Zone (marked by the red bell).
AND, within two days...
The Health Distribution's percentage of Red Zone stocks must be at or greater than 40%.
Below is an example of when the S&P 500 index (SPX) triggered a Bearseye signal on the same day it was stopped out. This is because the Health Indicator Red Distribution was already over 40%.
Figure 3.
Bullish or Bearish…
TradeSmith can help give you the mental fortitude to weather whatever the markets throw at you. Our Bearseye signal can help you prepare for coming market volatility, and our Bullseye signal can have you poised to take advantage of market gains.
Please reach out to us at support@tradesmith.com if you need any help.
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