Tuesday, March 2, 2010

The upward trend cross is upon us...

It looks like today is going to be the upward cross of the 13ma and 34ema. Since the S&P is currently 17 points above both moving averages, it may be wise to wait for a pull back for a better entry point. The actual system won't trigger a buy until the s&p touches the 34ema and successfully holds above that support for a day.

However, on many occasions, the s&p won't touch the 34ema again for quite some time as it continues to go up, up, and away. If transfers weren't limited to 2 per month, I would buy 50% on the upward cross, and then the other 50% if the 34ema holds as support. If one likes a lot of risk, the upward cross could be a good entry point for 100% S fund.

If one were to enter stocks today, the current sell target looks to be between 1150 to 1160 (the upper bollinger band).

1 comment:

  1. Extra caution is warranted. If we bang our head on 1127, that would complete a perfect and very rare "bearish gartley" pattern, likely sending us quickly back to 1040 spx.