Xr14-94 Stock market investors are always seeking the

“Holy Grail,” a sign that tells them the market has bottomed out or achieved its highest level. There are several indicators. One is the buy signal developed by Gerald Appel, who believed that a bottom has been reached when the difference between the weekly close of the New York Stock Exchange index and the 10-week moving average (see Chapter 20) is 4.0 points or more. Another bottom indicator is based on identifying a certain pattern in the line chart of the stock market index. As an experiment, a financial analyst randomly selected 100 weeks. For each week, he determined whether there was an Appel buy, a chart buy, or no indication. For each type of week, he recorded the percentage change over the next 4 weeks. Can we infer that the two buy indicators are not useful?