Methodology

Garzarelli Methodology

• Predict the stock market’s direction with our stock market model.
• Pinpoint the S&P sectors most likely to outperform with our 75 industry econometric models.

Our research has found that individual stock price movements are mostly determined by the direction of the overall stock market and the sectors the company resides in. We believe approximately:

That’s why our process begins with the big picture—forecasting the market’s direction using our proprietary Stock Market Indicator Model—before drilling down to the sectors poised to lead.

Market Model

We’ve built, rigorously tested, and are continuously updating our Stock Market Indicator Composite to identify the factors most strongly correlated with stock market direction.

Our model falls into four categories:

Our process attempts to eliminate the emotional bias which generally exists when forecasting.