Update Wed 5/1/2013 10AM EST: The System is now short at 1593.27 after being stopped out for a 3pt loss on its long position. The whipsaw continues but we hope for small losses now and big gains later when we catch the next trend. The System would go long again at 1597.57 with stop-and-go-short at 4hr support.
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Current SPX Position: Long from 1596.66
Next Action: Go short at 1593.27 with stop-and-go-long at 4hr resistance (currently 1597.57)
System Score: 5.5=Neutral=Trend Score + Turn Score=10-4.5
Proposed New Score: 54%=Neutral=Trend Score + Turn Score=48+6
The System was stopped out of its short for a 10pt loss (1587-->1597) and went long at 1597. It will stop out and go short at 1593. This type of back-and-forth action can occur when the Score goes neutral. The System is essentially trading both ways until a trend breaks out. I often call it whipsaw and the outcome can go either way. The whole idea is to outweigh the small whipsaw losses with larger trend gains, and it seems to work under most market conditions. Good fortune.
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