4:15pm: With the rather weak finish, both the healthy and unhealthy signals were on buys. As I alluded to earlier, this is a good sign. This will be the 21st time this has happened in 3 years...16 of the previous 20 have been winners within 3 days, half of them by at least 10% 3-6 days out! Let's see how it goes this time. The system is now 50% long. If we continue to go down, the 50% cash will be nice to have if we get another buy signal. Have a good evening and I'll see ya here tomorrow.
3:40p: SPY 135.17 or lower generates a buy signal.
11:20a: Well, so much for that bounce I mentioned yesterday... that is exactly why I need a system to guide me! :) Too bad we got a cover signal. Today is a different story. I mentioned yesterday (before I deleted it) that when my healthy and unhealthy signals are both saying "go long", it has an extremely high winning rate within 3 days (80%) and half of the winners have gained 10% in the 3-6 day timeframe. That is exactly what we have again today, which is why I say we're getting a strong buy signal. Yesterday, the signals didn't last until the close, and today we see why. But, let's see what today brings. Remember, big drops usually lead to big pops!