By Daily Crux Editor Justin Brill:
A proprietary indicator from Ned Davis Research suggests this could be a great time to buy stocks.
The indicator generates a buy signal when the percentage of stocks trading above their 50-day moving average moves above 90%.
Prior to the most recent signal on April 5, there have only been 12 others since 1967. Stocks average about 5% gains in the month following a signal, and almost 20% in the following year.
The signal's track record has been impressive so far, but even Davis admits there are no guarantees it will continue.
Be sure to use a
stop loss if you decide to give it a try.
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