Current SPX Position: Long from 1560
Next Action: Stop and go short at 1573.89 (would have been 1584.59 if SPX had closed 0.32pts higher)
System Score: 4=Bearish=Trend Score + Turn Score=10-6
Proposed New Score: 56%=Neutral=Trend Score + Turn Score=48+8
The Score is now bearish and the System is now calling for a short trade once stopped out of its long position. It turns out that the Proposed New Score had 16-17pts of paper profits on its short trade last week but it ultimately lost 4pts as SPX quickly reversed from 1540 (if you did not take 25% profits as I generally recommend once 1% paper profits are reached). The jury is still out on the new score as I said I'd reserve judgment until the next large downtrend is clearly over. Even if I decide not to do it, I will likely try to massage the current System Score into a 0-100 based number since it is easier to comprehend, chart etc. In any case, the rally keeps extending so decision-day for the new score likely still has weeks to arrive. I'd like to see SPX close one hour tomorrow above 1588.05 so that we can raise our long-exit/short-entry to 1585+. Now that SPX has reached 1580-1600, a backtest of the 1525-1530 breakout probably becomes a better target for the next downtrend than 1500ish but obviously thinking too far ahead can get you killed in this game. The System takes it hour by hour and I can generally get a good idea of how the System might respond to SPX price action scenarios 1 day or so into the future. But that's it. I think my System could possibly be applied to shorter and longer time spans but I haven't tried it and I'm personally not interested in shorter time periods. Maybe a longer-view System some day. Something to look forward to, right? Good luck.
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