Monday, July 23, 2012

Composite going 100% long.

After about a month of less than stellar performance, the CCI system finally proved its worth by holding onto the short position over the weekend. What pleases me even more is the fact I chose to hold onto a few shares of TZA believing that the CCI system was due for a win! I cashed out on the open and have been sitting in cash all day.

I'm thinking we'll see more downside over the next few days. However, now both my systems are generating long signals (the CCI is flipping to a "buy" today) and this will put the JT Composite system all-in long. No way do I have the guts to go 100% long today, but I may buy a few shares of TNA on the close. I still think there will be better prices tomorrow or Wednesday. Then again, what do I know...

The JTS, with its premature buy signal Friday, is still hanging above its half-stop loss of SPY 132.60, which is simply the swing low of 7/12/12. I would like to see us get closer to that value before I start loading up heavily on longs. Don't ask what happens to the Composite if JTS gets half stopped, because the answer is I don't know. When I created the JT Composite system and ran the stats, I completely ignored JTS stops. The thinking was that the CCI "checks and balances" the JTS, thus lessening the need for stops. So, in theory the JT Comp would stay 100% long in the event the JTS gets half stopped. I'll clarify this futher if/when we breach the 7/12 low.

Sorry for the length... Thanks for reading!


  1. Thanks, I like your long posts. Iwm had a huge sell on the close, so your feeling of getting a better price is probably right. So save some cash to use sometime tomorrow. Thanks for explaining your triggers and actions.

  2. I bought some after hours for 49.83. Thanks as always J.

  3. Went long today hoping for a bounce...

    I am now wondering if the market is holding its breath for AAPL earnings and may pop or drop tomorrow on that news...

    PPT is having to fight a lot of people selling... If they can't keep SPY above 133.38 well, it could get ugly from here

  4. I took an initial long position today also.