Part II is devoted to technical market research, after an introduction to technical analysis.

Trend analysis, which is essentially what this book is all about, is dealt with in Chapter 10. Thorough research is included in an attempt to quantify the fact that markets, in general, trend much more than not. This is presented with tables containing a wide array of market indices both domestic and international. The trend analysis is then presented on all of the Standard & Poor’s GICS sectors, industry groups, and industries. Additional tables of trend analysis are also included in Appendix B.

The concept that risk is drawdown is presented in Chapter 11, with a thorough analysis of past drawdowns from the Dow Jones Industrial Average beginning in 1885 and the S&P 500 Index since 1927, both in price and total return. Drawdowns of other asset classes are also presented.

Remember: All of the financial theories and all of the fundamentals will never be any better than what the trend of the market will allow.