5 replies to this topic

[Douglas]

Today and Monday is a risk window for a turn up reversal or acceleration of the current down trend.  The system is currently out in cash.   If the DJIA is above 19846 after 3 pm today, the system will buy RYDHX at its closing price.  The tight buy stop is being used due to the presence of the risk window.

 

According to one of the timing tools in my system, the next few days should be weak.  Also the rolling over chart pattern in the DJIA appears to be weak, so it is possible that the DJIA will sneak through this risk window without rallying, but possible White House goings-on are certainly a wild card which could drive prices in either direction sharply depending on what happens.

 

Regards,

Douglas

 

 

 

[thoughtpwr]

There is historically president for a sell off in the next week due to the January Defect trade lasting through 1/27.

[dasein]

what is the precedent and what is the Defect trade? ya got me???? tia

[thoughtpwr]

January Defect trade is short 1/2 of $$ amount on QQQ on close 18 and second half on 19th (this year) and hold to 1/27. From Larry McMillan and historically based.  So far its not doing so well, but I used DIA which has been weaker.

[dasein]

QQQ rsi 2 is pretty low I think - I m a little short the DIA thx

[Douglas]

The trading system narrowly missed being forced back in Friday the 20th.  The risk window is still open Monday the 23rd, so the narrow buy stop at DJIA 19846 after 3 pm is still in effect.  The wide buy stop is only at 19964, so it's not that far away either.  One would think that any important break out from this big, flat consolidation would probably be substantial enough to blow through both of these relatively close buy stops.   

 

The next risk window is this coming Friday the 27th through Monday the 30th. 

 

Regards,

Douglas