Wednesday, December 1, 2010

Sell signal...

Current market status: Uncertain ?
Wednesday's Signal: Sell/Short

Commentary
The 2nd buy signal last week turned out to be a winner, as is usually the case.  A potential strategy I will be working on during my coming "trading vacation" (mid-december to mid-January - for wash rule/tax purposes) is to close a position on the first signal and then open a new position on any 2nd signal that may follow.   For example, we had 2 buy signals last week... 11/26 and 11/30.  On the first signal, I would cover shorts on 11/26, then initiate a long position 11/30.   Sure, sometimes you won't get 2 signals, but at worst, you'll face no risk on the sidelines after that first signal.  This is just one idea.  I have others as well, and I'll have a month to backtest all of them.  Expect some changes next year.  Thanks!

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