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Stock-Signal.com: What Do I Do First?

|Includes:EFZ, HYG, PowerShares QQQ Trust ETF (QQQ), SPY

We have had a number of new subscribers email me in recent weeks and ask "what do I do first?" I have of course happily provided guidance via email, but I thought I might quickly cover in this week's blog post how to quickly get up to speed and use Stock-Signal.com. When I get time I will amend this information and turn it into a how to get started ebook as well.

So let's start with the basics for anyone that is not already a subscriber. Stock-Signal.com provides signals on when to buy and when to sell on any one or all of the seven indexes we offer signals.

We offer signals on the Nasdaq, S&P 500, high yield, EAFE, gold, DB Commodity, and U.S. Dollar indexes.

So as a new subscriber (or under a 30 day trial), your first order of business is determine how to use Stock-Signal.com. Here are some common ways:

  1. Just for the S&P 500 signals to time your 401k or other accounts between bull and bear markets;
  2. To build a diversified portfolio of some or all of these seven indexes (see our members area and our sample portfolios for ideas). I report on two such sample portfolios every month when I post performance for the index signals.
  3. To use the signals as a hedge for another portfolio. This hedge, unlike options or collars, makes you money as markets move higher and hedges if markets enter a protracted downward phase.
  4. To help in making allocation decision for others without really trading any of our indexes. This is how several registered investment advisors use Stock-Signal.com.

I am sure there are few more ways to use our signals, but these are the main ones.

So like I said, your first question is "how do I want to use Stock-Signal.com?"

Next, and let's assume for the sake of this post, you decide to build a simple portfolio of equal weight positions in the S&P 500, Nasdaq, EAFE and High Yield Indexes. So log into our member's area home page and you should see this:

These seven boxes highlight our current signals at any point in time.

So if you are looking to build your simple equal weight portfolio, you would buy ETFs or mutual funds (see our member's area list of ETFs or mutual funds) that go up when markets go up (we call this being "long" or "long funds") for the Nasdaq, S&P 500 and High Yield Indexes because they have "Buy" signals above.

You can use any self directed brokerage or IRA account to do this trade such as Schwab, Fidelity, Interactive Brokers and so on.

You might use the following ETFs tickers as an example (QQQ x 25%, SPY x 25% and HYG x 25%).

So now what about the EAFE Index which has a "Sell" signal? Well this signal indicates that we should either be in cash for this piece of the allocation, in an ETF or mutual fund that rises as that index declines (called inverse funds) or in a margin account you could even be short the long ETF (e.g. short EFA).

In our case, we are going to use an inverse ETF for the EAFE Index. You might pick EFZ and just like the other ETFs buy a 25% position.

So now you are invested with the signals and you just wait. Wait for the next signal to arrive via email or be confirmed in our weekly signal wrap up and technical review.

That signal looks like this:

When you get the signal please execute the trades to move out of your current position and into a position that fits the new signal. This can be done when you get the signal or on the next trading day.

So I hope this has helped. Our member's area also has a number of video tutorials that cover how to buy or sell and general tours of the site. Of course, feel free to reach out to me if you have further questions.

Stocks: QQQ, SPY, HYG, EFZ