Current SPX Position: None. Last long trade exited 1551-->1584.
Next Action: Go long at 1592.65 with stop a few pts below 4hr support
System Score: 8=Bullish=Trend Score + Turn Score=10-2
Proposed New Score: 68%=Bullish=Trend Score + Turn Score=48+20
The System was stopped out for a 33pt gain and has been on quite a roll lately. These things tend to go in cycles, so some whipsaw is probably heading our way but I think we'll get one more good trend down imminently. The Score remains bullish but will probably turn bearish on a failed rally from the 1550s-1560s or if SPX can test the 1590s for a few more hours. The SPX uptrend has been stubborn. SPX could be forming a 3-3-5 flat from 1597 which would call for an impulsive leg down to 1536ish (and probably my target of 1525-1530 if 1597 is not breached). That would catch people watching the potential H&S the wrong way like summer 2010. Good fortune.
P.S. I forgot to mention today was the 4th Sell on Strength day in a row. I don't remember that every happening before and it cannot be ignored. At a minimum, it limits upside and should cause consolidation for a few days. But, a downtrend is more likely.
Thank you for your response to my comment on your previous post. What vehicle do you use for treading your system? Do you use leveraged ETF? Thank you!
ReplyDeleteI mainly use options and improved my success immensely by going out further to 75-150 days in most cases which reduces leverage and time risk. My mistakes were more frequent, magnified, stressful and hard-to-recover from with short-term options. Stupid on my part to be quite frank. My ultimate goal is to build my account to a certain high level and then use 2x and 3x ETFS and maybe some very long-term options and possibly a small System service to make a modest living trading/researching the markets no more than 1-2 hours per day while doing other things I love most of the day. I do have some fun doing this as a competitor, analytical type and numbers man, but emphasis on the Finance industry and making money off money has always struck me as part of the problem with our society now but I'm just trying to win by the rules of the game that exist to help my family and secure my future. Good luck.
ReplyDeleteThat is so true. I am trying to learn TA so that I can win this game to get financial freedom for my family and myself. Getting tired for worrying about layoff once every year.
ReplyDeleteI think your system should do good with 2x/3x ETFs. Thank you for your post!