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Solving The Mystery Of The Bear Market

By Bryan Johnson

by Keerat

Bryan Johnson, US Financial Expert - Moon Run Report
 
Having won the World Cup Championship of Stock Trading® in 2008 and calling the crash in September, I have pursued the overall problem of calling bear markets. I wrote the book, Before the Bear Strikes to summarize my concepts and models. On the way, I have live tested my results since 2005 when I made my first discovery.
 
There were two ideas in my head when I first back tested for bear markets:
1) The market stalls out, or goes sideways, from the top. This means that investors cannot push the market higher.
2) The internals are breaking down, or the market weakens.
I checked 1987, 1990 and the 2000-2002 period. To my surprise, the models worked. Later, I fashioned indicators to calculate how to measure these components.
One size fits all approach does not work. There must be a multi-pronged approach, using different concepts to identify how the market breaks down.
 

 
The plan starts with a short-term timer,...

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