Monday, April 18, 2011

Buy signal confirmed

4pm: Buy signal is confirmed.  System takes a 50% long position at TNA 81.69.   50% remains as cash in case we get another buy signal before the next sell/short signal.  Good evening! 

2:45pm:  Here is the latest model output... A fairly strong buy signal.

12:55pm:  Earlier, I incorrectly stated the market had flipped to unhealthy.  It has not.  So long as SPY remains above 128.32 (the swing low of 3/23) we are still healthy.  To understand how I'm determining market health, read the comments from my April 9 "Weekend News" post.  Here is a quick rundown (click to enlarge).  With market health still intact the system is giving a buy signal, one in which I believe is fairly strong.

11:04am: How lucky was that sell signal 15 minutes prior to Friday's close? I'll take it! With today's plummet the market status flips to unhealthy. Additionally, with the poor attempt at a gap fill in the first hour, we are probably looking at a trend day down with a finish likely near the low of the day. This looks like a perfect set up for a short daytrade. As for my system, a buy signal today is impossible as a critical rule has been broken. Perhaps tomorrow will offer up something, be it a long or a short signal. For now I'm remaining on the sidelines with a hold signal firmly in place.

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