Tuesday, October 9, 2012

Buy signals.

Both the JTS and CCI are going long today, which generates a 100% long JT Composite signal utilizing XIV.   I will be a bit more cautious here going around 50% long/50% cash just in case we see more weakness the next few days. 

The half-stop on the JTS is now SPY 142.95.  A drop below that value would shift the JTS into unhealthy mode for the first time since early June. Normally, a dip into unhealthy territory after such a prolonged stretch of healthy conditions turns out to be a great buying opportunity.

Another possible target showed up today, which you may have seen if you were watching...

12 comments:

  1. Thanks, J. Is the half stop just for the J-trader system or for the composite as well?

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    1. No, when I tested the JT Composite system I didn't bother using JTS stops. Really, the only thing I use that stop loss value for is to know when to flip the JTS into unhealthy mode. If someone is strictly following the JTS, they should adhere to the half stop rule, but for those following the JT Comp, they need not worry about it.

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  2. Hey, J!... nothing like coming home from a little vacation to a move like the last two days, esp while being short. As I said last week, "...if we start rolling down (not on a gap open down) through today's LOD, the bears should resume control." And, boy, did they!

    Sorry we didn't get to tag-team that move together, but now we're back together again, as I'm picking up YM here in AH w/ya. I like yer buy signal. Covered all my recently-put-on shorts, as well. Like you, though, I'm leaving room to add lower. This thing doesn't look like it's done going down yet and if we get a good gap down tomorrow (likely), I wanna get more there "on sale".

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  3. JKH, congrats on the nice trade!! I should've bought shorts Friday morning when my system was giving a strong short signal. Unfortunately the signal couldn't hold into the close since they sold the jobs report all that afternoon.... that's trading, I guess. On the bright side, I didn't lose any money, so I'm happy about that. Hopefully I'll catch the next decent move with you.

    I wonder what that Alex is up to?!? :)

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  4. Knock on wood XIV is behaving in a weak market. Thank you, Contango.

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    1. Speaking of contango, have you seen this: http://dontfearthebear.com/alpha-strategy/

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    2. Interesting, thanks. I enjoyed your relevant discussion at the bottom. Some of those questions sound familiar. :-D

      I love seeing how others are using VXX and XIV. I become more fascinated with trading volatility with each passing day.

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  5. J, since my name is Alex, although not the Alex to whom you referred, I can tell you that he's making lots of money.

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  6. Hi J As i mentioned Yesterday i am long for tna. Like i said yesterday SPY filled the gap to 143.80 so i think it will continue to upward march .they pushed xiv to 16.86 max yesterday,as you said it looks strong

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    1. Lemme guess... and you sold your NFLX 2 days ago when it was up at 74 area, too....

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  7. I think XIV is going to fill the gap down 16.31 and i see they are feeling the gap on DOW 30 LET,S SEE

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