perhaps a simpler approach is the Point and Figure methodology which is probably the oldest in investment methodology. It helps you determine three things; 1. what is the risk level of the total market. 2. what sectors are performing best relative to all others 3. What is the risk level of individual stocks within each of the best sectors.
The foundation of the method is relative strength. I find it very helpful, once learned. just a suggestion. Many books/sites availble to teach it.
Asset Allocation: The Key to Proper Diversification [View article]
"If it ain't goin' up, don't buy it.. Nothing is goin' up so dont buy anything..'cept gold.. maybe
Tactical Asset Allocation, Part I [View article]
It helps you determine three things;
1. what is the risk level of the total market.
2. what sectors are performing best relative to all others
3. What is the risk level of individual stocks within each of the best sectors.
The foundation of the method is relative strength. I find it very helpful, once learned. just a suggestion. Many books/sites availble to teach it.