I believe that "The Chest Pain Index" is a valid tool for taking positions. If it hurts you should double down and either die from a heart attack or make money. Why would this work---human behavior almost never changes and to go against the "easy solution" is to be early, sell the top, buy the bottom, etc. Maybe we can actually make an index of 30 or so stocks and market the ETF with only .75% management fees.... Thoughts....
I prefer my "Sphincter Index". I think it gives better signals and you really know when your getting it up the ass when your prostate begins to tingle.
Reminds me of a joke... Divorcee visits a restaurant with a date and sees his ex-wife at a table with her new squeeze. Pissed over his exorbidant alimony he askks his date to be excused and saunters over to the table ans says"So how is that stretched out old pussy anyways/" The ex-wife's date doesn't bat an eye and says you know the first 3 inches are a little loose but the next 6 inches are nice and tight.
This is how they play in AC or LV. Put down 100 on a roulette. Either black or red. If you win there you go. Free drinks for the night. Might even get a cheap hooker. If you lose, put down 200. Still win 100 or lose 300. If you lose again. Put down 400. etc. etc. etc. Does work, but imagine if you are down 2000 and all you can win is a hundo...:eek: