Thursday, March 8, 2012

Short confirmed.

4:05pm... The short was confirmed. Let's go bears!


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Here are the numbers:

If SPY closes @ 136.41 or higher, the system sells the long position AND opens a 100% short position in TNA (buying TZA is always an option).

If SPY closes 135.97 to 136.40: Sell longs & head to the sidelines.

Below 135.97, hold longs.

Peace!

16 comments:

  1. Looking good, the long trade may be a winner after all...

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  2. J trader, do I understand, when the system gives a short signal, you do not actually buy the short position while the market status is healthy???

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    1. No, I am going fully short on the close. Market health is internal to the system and simply makes short signals harder to generate (when healthy). So this is a strong short signal and I am following it.

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  3. Can't imagine this NOT being a short now... unless there is a huge dump in the next 40 mins...

    WooHoo

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    1. If you want to be short, this should be a great entry. Way above the trigger!

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    2. Yup, short, done...

      Let's see what happens

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  4. And your CCI also paid off. If my calculations are correct, it was 6.8% on the TNA.

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    1. Yes, thanks for reminding me! I forgot to mention this in my post. I love the CCI.

      Another fun fact.... If the SPY CCI(14) is above zero again tomorrow or any of the next few days, it could generate a rare short signal in a "long only" environment. I'll make a dedicated post regarding this topic tomorrow, especially since we are short now.

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  5. J, in a healthy environment, does the system tend to hold onto shorts for a shorter period of time than in an unhealthy environment? For example, if this short proves profitable, will the system be likely to get out of it quickly?

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    Replies
    1. Yes, definitely. The reason is that requirements to generate a buy signal in a healthy environment are more lax than in an unhealthy market...

      Still though, it just depends on how the next few days play out. We could be short for anywhere from 1-10 days. It's impossible to say at this point.

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  6. Kinda wish I had waited to today to sell my TNA... sigh, oh well
    :-)

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  7. hi j
    what is the stop loss for tna? thanks

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  8. Yes this sucks, but now we sit back and wait... Patience is required. :)

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