Praise for Investing with the Trend
"If you want to take a master class in financial markets, this is the book for you."
Mebane Faber, CIO, Cambria Funds
"Greg Morris is a learned scholar, sharp observer, rational thinker, and successful stock market analyst and investor. All these characteristics are displayed in his new book Investing with the Trend. It is a gem. His understanding and refutation of many Wall Street myths are brilliant; his evaluation of stock market indicators is well–reasoned; and his investment style and risk avoidance methods superb. Anyone, professional or otherwise, interested in a reasoned, fact–supported, comprehensive book on the stock market should own it."
Charles D. Kirkpatrick, CMT, Kirkpatrick & Company, Inc.
"Anyone wanting to read about technical analysis should read this book first. It is the benchmark book that all other books on the topic should be compared to."
Peter Mauthe, Investment Banking
"If you invest in stocks without first investing in this book, you are a fool. Well written, documented, and practical, Greg′s work is an amazing accomplishment, combining knowledge with wisdom. In my library of thousands of market books, there are only a few ′must reads′. This one has earned that honor."
Larry Williams, Trader
"The trend is your friend, so make friends with Investing with the Trend. Whether you are emotional or disciplined, a numbers nerd or not, Greg will show you how successful investors let the rules rule."
Sam Stovall, Chief Equity Strategist, S&P Capital IQ
Part I: Market Fiction, Flaws, and Facts 13
Fictions Told to Investors 15
Flaws in Modern Financial Theory 27
Misuse of Statistics and Other Controversial Practices 51
The Illusion of Forecasting 57
The Enemy in the Mirror 71
Market Facts: Bull and Bear Markets 83
Market Facts: Valuations, Returns, and Distributions 113
Part II: Market Research 139
Why Technical Analysis? 141
Market Trend Analysis 159
Drawdown Analysis 231
Part III: Rules–Based Money Management 267
Popular Indicators and Their Uses 269
Measuring the Market 281
Security Ranking, Selection, Rules, and Guidelines 319
Putting It All Together: The Dancing with the Trend Model 355
Putting Trend–Following to Work 391
Appendix A: Passive versus Active Management 409
Appendix B: Trend Analysis Tables 413
Appendix C: Market Breadth 445
Appendix D: Recommended Reading 457
About the Author 467
About the Online Resources 469