Technical Attributes

To evaluate a fund against the market, we also use its Technical Attributes as a basic rating system. One point is scored for each attribute that is positive relative to the market - with 5 being a perfect score.

  1. First, we compare its relative strength to the market.
    • Will it outpace the overall market?
  2. Next, we compare its relative strength to its Peer Group.
    • Do we have first string players, or just bench warmers?
  3. Then, is the fund's sector positive or negative?
    • Are we swimming upstream against the current, or downstream with the current?
  4. Next, has it broken a resistance line?
    • Did we break one to the top side - meaning positive? Or, did we break one to the down side - meaning negative?
  5. Finally, what is the direction of the fund?
    • Are we in a column of X's - going up and indicating that demand is in control?
    • Or are we in a column of O's - going down and indicating supply is in control?