2 replies to this topic

[Douglas]

The next risk window appears to be this Wednesday and Thursday the 7th and 8th.  Risk cycle-wise next week is a lot more interesting.

 

The system is still long, but the sell trigger is set just waiting for a relatively close stop to be crossed.  In the good ole days, all the sell indicators in my system would have had me out the door several days ago.  Since I've come over to the trend way of thinking, I don't leave the party until I hear the police knocking on the door.  And boy is this one over-done party with Dark Side of the Moon playing, the keg floating, no nachos left and stoned-paranoid me just glued to the window watching for blue lights and sirens.

 

Regards,

Douglas

   

[babs]

just tell the police that none of it is yours

 

[Douglas]

Too much time has past since the sell signal trigger was set, so the system has reset the trigger.  A loose stop is in place instead of the tight stop.  The system is still long, and it would haven taken a pretty good hammering into the close to get it to sell (almost - 2% today).  I know it seems strange to loosen stops as prices rise, but the system gives more respect to a persistent trend which overwhelms negative sentiment and divergences.  Wednesday and Thursday the stop will again tighten since they are in a risk window albeit a small one.

 

The loose stop lets the system stay in if a "normal" correction occurs since it is overdue, but will try to stay on the horse for the next ride.  Given the torrent of risk cycle turns next week, I think that is when the real rodeo starts.

 

Regards,

Douglas