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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: FlyingCircus ✧  😊 😞
Number: of 6243 
Subject: Re: An observation
Date: 05/18/25 4:36 PM
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No. of Recommendations: 8
It looks like the OPost is gone.
The OPoster is right in that back in the day (late 90s/early aughts), the group built screens based on fundamental metrics and limited technical factors (mostly, relative strength).

However, it became apparent with experience that market behavior in general dictated the movement of most stocks up or down, obviously to differing degrees. Holding a stock with recently great fundamentals in a downtrending / bear market was generally highly likely to lose money. Which led to the development of the BearCatchers and other market "timing" (really health/breadth & what became trend following) signals. Those signals are generally intended to play defense against drawdowns, but a few are targeted to identify sentiment extremes which are great contrarian, short term, opportunities.

Combined with the decreasing relevance and sporadic / randomized (if not disappearing) outperformance of the now-ancient fundamental factors - for a variety of reasons -, that's why the focus of the group has settled on market-based technical indicators.

FC

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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
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