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I responded:

Hi Todd, I think trading is both an art and a science. The science is really just mathematics that allows you to have a certain view of securities that you don't get by looking at a simple chart, or looking at financial summaries, or most analysts' reports.

But then you just have to get a feel for it. I call it the dance. There is a flow. There is movement to and fro, etc. You have to learn when it's best to be aggressive, and best to be defensive. And everybody dances differently, and likes different kind of music. That's why it's hard for me to blog for everybody " and harder for you to understand me unless I attach a time horizon.

When I get my proprietary programmed trading models working well enough, I'll take some Dow stocks that everybody knows, and a short enough time frame that would retain people's interest and I'll set up a sample portfolio with hypothetical trades that come off the Model.

That's not to say my Model is any better than any other one, but just that I don't have the time to lock into one security and write about the trading points as they happen etc. But I could have a computer do that for me, and then comment later.

Thanks for your support. /Bill

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Well, we could have a look at Boeing (NYSE: BA), because that company is in the news today with reports of a major sale of commercial aircraft, of Pentagon cutbacks, and so forth. The stock has just hit a cycle high of $62.90, and is very strong, up 2.4 pct on the day, which is the Dow leader today.

Yesterday, I gave you reasons why I think the stock is close to or early into the Cara Distribution Zone. Based on a few factors, I wrote that I believe, for some investors, it ought to be sold, or calls written against long positions. You see, for the Extra-Year Trader who likes to make no more than one buy and sell trade within a year, and preferably within a longer period, the stock is at a Point of Cycle number 5.

If you shorten the time horizon, using RSI and MACD only as indicators of Point of Cycle, you will probably recognize that BA is at Point 4 to 5 for the Inter-Year, and Inter-Month Trader. Time being short for me today, you'll have to look yourself.

In building my proprietary trading models, some of the inputs are macro-economic, forex, interest rates, and a variety of equity prices (broad market, sector, industry, etc), as well as the various time series (Monthly, Weekly, Daily, etc) of maybe 2,000 individual stocks.

Sometimes these various inputs differ considerably as to their influence on the current stock price of each of the stocks in the database.

For example, one of my associates, who I am helping break into the business, Edward Liu originally from Beijing, and recently from Vancouver B.C., is a developer of economic models for funds, portfolios, ETFs, and individual stocks. His company is called RiskFile, and he produced the following report on BA for me.

As it is one of the inputs I use (not in my proprietary Model, but via observation only), I thought I would re-publish it for you.

In my view, this info from RiskFile requires another iteration of presentation level, as regular users would understand it, but most persons who are new to it would not. In any event, there are some good concepts involved here, and I'll try to help Edward expand this work, and combine it with my own as we take it back to the rapidly developing market in the People's Republic of China.

You can see from the Riskfile Report that BA is moderately positive, whereas overall I am not. RiskFile would change its recommendation if short-rates and mid-rates in the U.S. were to rise, and Money Supply and inflation and the Dow to decline.

But 44 pct of the move in BA stock, according to RiskFile, is related to interest rates in the U.S. That makes sense as Boeing is a high debt company, and so interest rates would burden the company and lower its profit. Also, higher interest rates would burden their airline customers and cause them to reduce or defer purchases.

The USD is another factor, because a rising Dollar would make the commercial aircraft more costly for foreign buyers.

In any event, I wanted you to see that any perspective on these large cap stocks is broadened by the number and variety of analytical studies you do.

At the end of the day, you have to start thinking of the importance of these drivers of stock prices in order to gain a greater degree of control over your portfolio performance.