Bull & Bear Tracker

The Bull & Bear Tracker is a trend-trading-algorithm which was developed by Michael Markowski who has a successful track record for developing high performance trading and investing algorithms.   For information about Mr. Markowski’s three algorithms click here.      

The Bull & Bear Tracker’s algorithm monitors the global markets 24 hours per day to predict the direction the S&P 500, the world’s largest stock market index, is heading.  When the market is headed higher, the signal is green.  When the market is headed lower the signal is red. The Bull & Bear Tracker is always in the market with either a green or red signal.

Exchange traded funds (ETFs), which mimic the performance of the S&P 500, are utilized to trade the Bull & Bear Tracker’s green and red signals.  The ETF which can be used by an investor when the signal is green and the market is heading higher is the S&P 500 SPDR (Symbol: SPY).  For example, if the S&P 500’s index consisting of 500 companies increases by 10%, the SPY would also increase by 10%.  The ETF which is used by traders and investors who are betting that the S&P 500 will decline is the Direxion Daily S&P 500 Bear 1X ETF (Symbol: SPDN).  It’s the inverse of the SPY.  Should the S&P 500 decline by 10% the SPDN would increase by 10%.

Since the Bull & Bear Tracker’s signals proved to be very reliable during 2016, my recommendation for traders and investors when it was re-launched in early 2018, was to utilize the two ETFs below to trade its signals.  Both of the ETFs enable an investor to deploy 300% leverage. For example, a 10% change for the S&P 500 would be equivalent to a 30% increase for each of the ETFs.

• Green: Symbol:  SPXL (Direxion Daily S&P 500 Bull 3X ETF)   
• Red: Symbol:  SPXS (Direxion Daily S&P 500 Bear 3X ETF)

The table below includes all of the statistics for Bull & Bear Tracker’ published and also back tested signals from December 29, 2017 through November 30, 2018.

Since the beginning of the stock market; scholars, researchers and analysts have been attempting to no avail to find the “Holy Grail” of marketing timing.  Investors have always sought to be out of the market during periods of substantial declines.

The financial services industry has gone to great lengths to educate their clients to embrace a buy-and-hold philosophy, thus remaining in market during recessions and other periods of high risk.  A statistic often used by financial advisors to pacify edgy clients is that being out of the market for its best days over a long period substantially reduces gains. An example that has been widely used is that $100 invested in 1970 grew to $1,910 by 2016 under a buy and hold strategy. The amount fell to $310 assuming the $100 was not in the market for the best 25 days of the 46-year period.  However, the statistic rarely cited in the chart below is $100 grew to $12,045 had it missed the 25 worst days during the 46 years.

Unfortunately, the best days for the bull market which began in 2009 are in the rear-view mirror.  Since the S&P 500 may have already peaked after a nine-year uptrend, the market’s worst days are now on the horizon.  

The Bull & Bear Tracker is the solution for “the worst days of the market” dilemma which all investors will soon face.  The Bull & Bear Tracker’s signals enable investors to trade inverse Exchange Traded Funds (ETF) to profit from the market’s worst days.  It’s hard to fathom the returns that the Bull & Bear Tracker could have generated had it been operational during the worst days of the 1970 to 2016 period.