Thursday, October 6, 2011

Sell confirmed.

10pm: Longs have been closed and stats have been updated. I'm looking at 3 losing months in a row (so far) which I am not happy about. The recently implemented stop loss rules hurt me with this latest trade...half of my longs were stopped out a terrible price. Hate stop losses!

Fortunately there is plenty of time left this month to right the ship. One interesting thing to note is that a green SPY candle tomorrow will flip the system right back to healthy mode. At that point, it shouldn't be too difficult to get a buy signal sometime next week. I'm ok with that b/c the 200-day MA has to be tested eventually, right?

On the next buy signal, the stop loss would be set at SPX 1074.77. I have a feeling if we break that low, there will be no such bounce like we've seen this week. Bombs away to 1000.

2pm: Sell signal if SPY closes at 116.03 or higher. No short signal today. If SPY closes below target number, then continue to hold longs.


  1. I KNEW I should have moved to the F fund... oh well, bought TZA at the low earlier this afternoon, so let's see how this goes...

    Did a couple TNA trades this week for about 3% total... can't complain...

    Thanks J!!

  2. No prob! :) It's a bit too early to worry about missing the move to the F fund. I got a sell signal only because my system detects no further edge to the upside. It is NOT because it has detected a downside edge. (That would come in the form of a short signal.)

    Ignoring my signals for a minute and looking at charts, it appears the target is the 50-day near 1180. And now that the August lows have been exceeded, a move back up to the 200-day is a very realistic possibility.

  3. Wild afternoon, heading up... SPY may tag 118 and the 50ma and the decending trend line... might be a good time to buy TZA ;)