Thursday, December 8, 2011

Buy confirmed.

5:15pm: A buy signal was confirmed. Because the late downward surge took the SPX below the critical 1234 level, we did not get a strong buy signal. Thus, my current long position is pretty small at this point.

3pm: A buy signal will be confirmed if SPY closes below 126.59. This is almost a given based on today's action. Further, it is a strong buy signal if the follow 2 conditions are met.

1) SPY closes below 125.81
2) SPX does not drop below 1234

Obviously I would be more confident with the long position if we can get the strong buy, but #2 looks like it could be in jeopardy going into the last hour.

Either way, I will be closing my short position on the close and taking a relatively small long position. Too much uncertainty with the "EZ" to place a 50% bet in my opinion, although the system doesn't work that way.

See ya tomorrow!


  1. J, thinking this will continue or heading down into next week?

  2. Probably head down next week, but that is only a guess. It's almost unbelievable that 6 hours of straight down yesterday has been reversed in just 3 hours. Seems like good news for the bulls.

    Despite this, I hedged my long with a bunch of TZA recently because i don't think we'll go up much more (if at all). There I go again, deviating from my system. :)

  3. I am thinking so too and won't be around for your signal today...

    So, I think I will set a limit order for TZA at 27.20 and see if it gets hit and just wait and see...

  4. I found you through Cobra's website. Your site is very ineresting, indeed. I do have one question: I assume that the system returns that you're posting are live trading. Do you have any backtested results?