Looking at the XAO the past week or so and seeing the carnage in some stocks, got me thinking again about Index filters.
In Nick Radge's latest book "Unholy Grails" there seemed to be consistent mention of the importance of being out of the market at the right (or wrong) time to protect capital and maximise returns.
I'm interested to know how people on here trade based on the position of the Aussie Index.
- Do people analyse the Index like a regular stock and determine whether it is in a weak or strong (short term and long term) position and the base their stock selection/exposure on this?
- How much time to people spend out of the market all together?
- How strong (or weak) does the Index have to be to warrant taking any positions?
Maybe if people could just share some general thoughts (either answers to the above or something else) it would be a huge help.