The short signal was confirmed. It was a close one as it came down to the final 30 seconds. So, for those who missed it (like myself), trading after-hours or waiting until tomorrow are always reasonable options. Obviously those who trade futures contracts are not impacted by such close calls. I've recently been trading after-hours and pre-market using my broker's website and have found it rewarding. Fees and commissions, and the whole ordering process are identical to market hours, save for having to use limit orders...which is no big deal.
Again, if you'd like email notifications of my posts, please see the message below. Thanks all!
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The system is giving a strong short signal if SPY closes 140.08 or higher. Otherwise, it will remain 100% cash with a hold signal.
Thanks to those who've responded to my previous email. I haven't added anyone, so no need to look for a notification yet. :) I will let you know.
Thanks for the signal, J.
ReplyDeleteI agree that trading after-hours is very easy. Another option is a conditional order: if this condition, then that order.
I should add that for those people worrying about pattern day trader status, an after-hours trade is no different from one during the trading day. A day trade is a round trip on the same day. If a trade is helf overnight, then it is no longer a day trade. Another option for those worried about exceeding their three day trades in 5 day limit is to trade futures, which aren't subject to day trading restrictions.
Oh great, a Spain downgrade. Correct me if I'm wrong, but I think every time a country has been downgraded in the past year, the market was up HUGE the next day.
DeleteShould've just bought AMZN. :)
The easy solution is to trade the futures, instead of index ETFs. W/Futs, you get tax advantage (Section 1256 treatment) benefit, plus capital-loss-carry-back, plus unbelievable liquidity. They are open and liquid pretty much around the clock (except 4-4:15pm daily, and 4:15pm Friday to 6pm Sunday. Might want to check out the benefits of index emini's, instead of stock ETFs. They work quite well.
ReplyDeleteThanks JKH...it's on my to do list, but not very high. Your comment has bumped it up a couple notches though.
DeleteThanks JKH for adding liquidity and tax advantages to the reasons for trading futures that I mentioned above. However, to be fair, we must mention a disadvantage: leverage. One contract of ES (which would be the logical e-mini to trade for this system, since SPY has a higher correlation with TNA than QQQ) controls over $60,000, so that a little drawdown can be quite painful. In fact, for small accounts, trading futures can wipe one out with just a couple of bad trades, something any system can generate.
ReplyDelete