Thursday, May 3, 2012

Buy signal confirmed.

3:30pm Update: If SPY closes 139.75 or lower, we'll have a strong buy signal. The system will cover the short position and take a 100% long TNA position on the close. If we manage to close above 139.75, it will be another hold signal with more downside expected in the short-term. Good trading!


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Current status (if the market closed right now): Strong buy signal.

More to follow as we head into the close...

14 comments:

  1. I'm still a newbie so just to confirm if a buy signal happens you will sell your short position and buy long TNA correct?

    I'm not holding any TZA or TNA currently, but am looking at buying some TNA at these prices anyhow since it seems to keep bottoming around the 56.3X area. Hopefully it will be up from there tomorrow maybe?

    Thanks!

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  2. Correct, I didn't spell out the process in my original post, but I always do in my final EOD post and the twitter messages. Thanks.

    If we go up too much in the last 30 minutes, more downside is expected. Strong closes can sometimes be quite bearish.

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  3. Thanks for the early signal call.

    I had opened a small TNA on the positive div on the 15 min charts, 30 min BB signal on Vix and a tick signal. All those TA's I watch. I pulled profits before your signal. Broke your trading system, regretted that, and will be more diligent in the future.

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  4. Thx, J... I covered a good chunk of my shorts today, and will cover the last bit on any good downside tomorrow and then start building longs w/ya. This past trade has been good. Fun to make profits even in a "healthy" market. Tho, probably wouldn't take much downside to move back to unhealthy, now, would it?

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  5. Since I am doing the 50/50 thing, I was wondering if I should buy more at the opening as TNA has dropped 1.5% already or do you think we will get a sell signal?
    I hate to waste a move and be out for Mon/Tue

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  6. BTW, congrats to those that waited until today to cover your short and buy TNA... nice :-D

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  7. My rule is to never get in front of economic news that can have a major affect on the market good or bad. Too much pain. Take the crumbs.

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    1. Then you must day trade because there is economic news 3-4 days a week...

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    2. Bah, that does not sound like good advice. We need the volatility to make good money. If you want to play it safer, then hedge or scale in/out... there's usually no rush on any signal from any system. That's why I waited on the cover yesterday.

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  8. Well, this is a bummer. We got long at least a day early. I can't help but think there is more downside coming too. I will add more longs if we close below SPY 137.21.

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    Replies
    1. If we are strong into the close, I may get some TZA...

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  9. J-could you please give a hint on the call today. I need to get going to the airport before market close. And with Your "think there is more downside coming" I do not want to take a greater hit than I have already taken. Thanks if you could.

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    1. Likely we'll have a good opportunity to join the second buy on Monday. No rush. I dumped the last of my shorts today, and started building longs. And will continue on Monday, esp on weakness. I like the long here much better than I did yesterday, based upon the charts.

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