Comments for Grail Investing

Comment on Friday’s activity by Larry Holmes

Larry Holmes — Mon, 30 Aug 2010 00:01:22 +0000

Layne, with RSI (2) it was trial an error. With RSI (5) there used to be a guy who had a website who did a study going back to 1997 of buying QQQ when RSI (5) got below 30 and selling it above 50. I got it from him.

Comment on Friday’s activity by Layne Golan

Layne Golan — Sun, 29 Aug 2010 18:03:26 +0000

Hi Larry,
For RSI reversal and RSI (2) a close below 5 is a buy signal and for RSI (5) a close below 30 is a buy signal. How did you choose 5 and 30 as your oversold values?
Layne

Comment on Weekly Grail Report by Layne Golan

Layne Golan — Wed, 25 Aug 2010 20:19:04 +0000

Thanks!

Comment on Weekly Grail Report by Larry Holmes

Larry Holmes — Wed, 25 Aug 2010 09:17:41 +0000

I understand what you’re asking, so let me explain.

Money market funds buy very short-term debt instruments like T-bills, commercial paper and bank CD’s. If there is a mixture of different types of securities in the portfolio the yield is likely to be slightly higher than just T-bills alone.

Also, there are money market funds that only invest in T-bills. That’s what I meant by high quality money market funds. The yield on those funds should be identical to owning T-bills.

Of course, right now the yield on money market funds and T-bills is almost zero. But there have been times (like in the late 70′s and early 80′s when interest rates were in the double digits) when the yield has been significant.

Comment on Weekly Grail Report by Layne Golan

Layne Golan — Wed, 25 Aug 2010 04:52:42 +0000

I did not know if there is or ever has been a significant difference between money market funds returns and T-bills returns. That’s why I asked. Thanks!

Comment on Weekly Grail Report by Larry Holmes

Larry Holmes — Wed, 25 Aug 2010 01:22:23 +0000

I’m not sure what you mean, Layne. You can buy T-bills if you want to. But what’s the material difference between the return of a high quality money market fund and the return of T-bills?

Comment on Tuesday’s activity by Larry Holmes

Larry Holmes — Wed, 25 Aug 2010 01:14:27 +0000

It sure is.

Comment on Tuesday’s activity by Jared Yucht

Jared Yucht — Tue, 24 Aug 2010 23:59:53 +0000

It’s a qqqq boll band day tomorrow.

Comment on Weekly Grail Report by Layne Golan

Layne Golan — Tue, 24 Aug 2010 20:33:04 +0000

Right, but when signaled to get out of the asset class of my choice the cash is automatically invested in a money market fund by the brokerage, right? You aren’t investing in T-Bills when the monthly close is below the 10 month moving average (like in Faber’s paper).
Layne

Comment on Weekly Grail Report by Larry Holmes

Larry Holmes — Tue, 24 Aug 2010 09:18:21 +0000

Just like the Long Term Timing strategy. You put it into asset classes that are above the moving average. Like bonds or foreign stocks or simply a money market fund.