Thursday, December 8, 2011

Buy confirmed.

5:15pm: A buy signal was confirmed. Because the late downward surge took the SPX below the critical 1234 level, we did not get a strong buy signal. Thus, my current long position is pretty small at this point.


3pm: A buy signal will be confirmed if SPY closes below 126.59. This is almost a given based on today's action. Further, it is a strong buy signal if the follow 2 conditions are met.

1) SPY closes below 125.81
2) SPX does not drop below 1234

Obviously I would be more confident with the long position if we can get the strong buy, but #2 looks like it could be in jeopardy going into the last hour.

Either way, I will be closing my short position on the close and taking a relatively small long position. Too much uncertainty with the "EZ" to place a 50% bet in my opinion, although the system doesn't work that way.

See ya tomorrow!

4 comments:

  1. J, thinking this will continue or heading down into next week?

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  2. Probably head down next week, but that is only a guess. It's almost unbelievable that 6 hours of straight down yesterday has been reversed in just 3 hours. Seems like good news for the bulls.

    Despite this, I hedged my long with a bunch of TZA recently because i don't think we'll go up much more (if at all). There I go again, deviating from my system. :)

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  3. I am thinking so too and won't be around for your signal today...

    So, I think I will set a limit order for TZA at 27.20 and see if it gets hit and just wait and see...

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  4. I found you through Cobra's website. Your site is very ineresting, indeed. I do have one question: I assume that the system returns that you're posting are live trading. Do you have any backtested results?

    ReplyDelete