Thursday, March 1, 2012

Hold confirmed.

Hold longs.
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If we happen to close at 137.94 or higher (spy), we will have a strong short signal - our first 100% position. If we can't reach that lofty number, continue to hold the long postion.

19 comments:

  1. Can someone help? I bought some tna yesterday and if the signal goes through how do i go by shorting it using scottrade? Thanks!

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    1. You need a margin account to short stocks and etf's. If you have a margin account, when it comes to scottrade and shorting, you'd place a "sell short" order same as you would a "buy" order.

      The easiest way of course is to do what Algyros recommended. Just buy TZA. Signals usually don't last long enough to have to worry about the decay factor.

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    2. only thing i worry about with switching to TZA is the short term free riding rules.

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    3. Ill tell ya the same thing I told RMI. Either get a margin account or continue using 50% positioning.

      Or trade futures.

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  2. I don't use Scotttrade, so I'm not familiar with them, but the usual way would be to sell twice as many shares as you own. In other words, if you bought 100 shares yesterday you would sell 200 to get a 100 share short position.

    If you can't short, then sell your TNA and buy TZA.

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  3. so if i own 100 and i would use the "sell short" option for 200 share?

    btw thanks guys.

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  4. What are "free riding rules?"

    And law87, I'm not sure what a "sell short" order does. It may close your long position and then short 200 shares. I'd check on that if I were you.

    I use IB, and they have no "sell short" order. It's simply buy or sell. If you sell what you don't have, you're short that number of shares.

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  5. This discussion is pointless if you don't have a margin account. But with scottrade u would sell your 100 shares of tna with 1 order. Then place another order to sell short 100 shares of tna.

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    1. With ST, u cant consolidate orders like what algyros is describing w/ IB.

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  6. Replies
    1. Great. Practice going short sometime by taking a small short position using the "sell short" option under the trade tab. When you're ready to cover simply use the "buy to cover" selection.

      If you're trading a margin account there are no free ride restrictions / 3 day settlement restrictions.

      Since the system is long perhaps try shorting tza or vxx.

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  7. System was on target today but TNA bailed out on us at the end when the market headed up.

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    Replies
    1. No worries, tomorrow is another day.

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  8. Goldman Sachs down graded the RUT in the afternoon.

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  9. Lately here in backwardsland, everything that's been downgraded has gone up within 24 hours.

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  10. For those wanting to trade e-mini futures, an interesting site is: http://www.sectorspdr.com/correlation/

    What this site offers is correlations among etfs. For the past three years, TNA has been correlated as follows with the most liquid etfs (and, more importantly for this post, the most liquid e-minis):

    QQQ: ,.78
    DIA: .81
    SPY: .86

    Since a large number equals a closer correlation, it would seem that ES would be the best e-mini to trade using J's system.

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  11. I should add that there is a small cap e-mini, SMC. The only problem is that it isn't as liquid as the ones posted above, and you can't really trade it except during the trading day.

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  12. The results are very similar if tested to the inauguration of TNA using ETFReplay.com (a site that I highly recommend).

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