Jump to content



Photo

McClellan


  • This topic is locked This topic is locked
128 replies to this topic

#31 diogenes227

diogenes227

    Member

  • TT Patron+
  • 4,523 posts

Posted 13 May 2009 - 05:09 PM

Following up on yesterday's Nasdaq Summation Sell. The New York Summation, which was dead flat yesterday, gave its sell signal today.

What a great rally this was! The leveraged ETFs on the NYSI sell signal finished as follows: UWM up 42 percent, SSO up 36 percent, QLD up 30 percent, and TNA up 59 percent.

Until further notice, it's now be flat, or net short, or shorting the bounces...

Good trading to all. :)

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=5&dy=0&i=p93444397935&a=163053782&r=6459.png

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#32 SilentOne

SilentOne

    Member

  • Traders-Talk User
  • 3,452 posts

Posted 14 May 2009 - 08:26 AM

Nice work diogenes227. What a great board! :D cheers, john
"By the Law of Periodical Repetition, everything which has happened once must happen again and again and again-and not capriciously, but at regular periods, and each thing in its own period, not another's, and each obeying its own law ..." - Mark Twain

#33 mdszj

mdszj

    Member

  • Traders-Talk User
  • 42 posts

Posted 23 May 2009 - 07:13 PM

Diogenes I just joined traders talk and have been looking around a bit, looks like some very smart people on here. But your strategy is really awesome. I just finished reading this thread and will re-read it again to absorb it better when I get a little more time. Great job! I am sure I will have some questions for you soon, thx.

#34 kssmibotm

kssmibotm

    Member

  • Traders-Talk User
  • 629 posts

Posted 30 May 2009 - 11:09 AM

Diogenes, Looks like the NYMO has crossed above the zero line and NYSI has ticked up. Is'nt that a buy signal? KMB

People think the Holy Grail is something looked for but never found. In fact, it is something often found but rarely recognized.

#35 diogenes227

diogenes227

    Member

  • TT Patron+
  • 4,523 posts

Posted 31 May 2009 - 08:10 PM

Diogenes,

Looks like the NYMO has crossed above the zero line and NYSI has ticked up. Is'nt that a buy signal?

KMB


Yes.

:)

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#36 diogenes227

diogenes227

    Member

  • TT Patron+
  • 4,523 posts

Posted 01 June 2009 - 03:35 PM

Diogenes,

Looks like the NYMO has crossed above the zero line and NYSI has ticked up. Is'nt that a buy signal?

KMB


Yes.

:)


For the record, a combination of leveraged short ETFs (SDS, QID, TWM) was stopped out for a loss of 5.33 percent on the Summation buy signal Friday. The combination of leveraged long ETFs (SDS, QLD, UWM), that replaced them on the buy signal were up more than 5.5 percent today.

Good trading to everyone. :)

http://stockcharts.c...3862&r=4093.png

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#37 Scott-stock

Scott-stock

    Member

  • Traders-Talk User
  • 128 posts

Posted 01 June 2009 - 04:15 PM

Diogenes Do you have the formulas for both the Trader and Investors summations, etc in EXcel Thanks

#38 mdszj

mdszj

    Member

  • Traders-Talk User
  • 42 posts

Posted 01 June 2009 - 04:47 PM

Diogenes Was wondering what you base your stop loss points on, for example, a few cents below previous day low, or a certain S/L level, etc? Also - I missed the buy signal frmo last night/this morning, am wondering if it is generally not a good idea to jump in a day late. Any thoughts? thx for any info on this.

#39 diogenes227

diogenes227

    Member

  • TT Patron+
  • 4,523 posts

Posted 02 June 2009 - 09:36 AM

Diogenes

Do you have the formulas for both the Trader and Investors summations, etc in EXcel

Thanks

I use Trade Station, which calculates the Oscillator and Summation Index in real time.

For the Excel formula, try:

http://www.mcoscilla...Oscillator.html

If you're interested in studying this in detail, you probably ought to subscribe to the McClellan site, at least for a time. By the way, the use of "trader" and "investor" at the top of this thread is my designation for trading time frames. Most traders can use the Oscillator and trade in context with the rising or falling Summation index -- be long when it's rising, flat or short when it's falling.

If I was running a hedge fund with a bunch of billions, I might use the Summation as if it was the Oscillator itself and plant a few billion here and uproot a few billion there on divergences in the Summation.

Good trading to you. Hope that helps. :)

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#40 diogenes227

diogenes227

    Member

  • TT Patron+
  • 4,523 posts

Posted 02 June 2009 - 10:53 AM

Diogenes

Was wondering what you base your stop loss points on, for example, a few cents below previous day low, or a certain S/L level, etc?

Also - I missed the buy signal frmo last night/this morning, am wondering if it is generally not a good idea to jump in a day late. Any thoughts?

thx for any info on this.


For the purpose of this thread, I've been using the Summation simply as a stop and reverse point. Be long when it's rising, short when it's falling. But in reality, there is much to be said for selling into strength and buying weakness (using the lows-above-lows and high-below-high divergences in the McClellan Oscillator itself, especially late in a move) since the Summation often lags the turns.

Other than that, stops, of course, are a very personal with traders, primarily based on risk tolerance. How much can you stand it going against you? For instance, I can hardly stand any draw down. I want a trade to go my way from minute one. So in day trading, stops are extremely tight -- like if I buy something above the open, the low of that day is likely the stop, and I will move the stop to open itself just as soon as I have the room to do it. Below the open leads to a red candle on the daily and red candles on the long side are never good.

As to your "a day late" question, Linda Bradford Raschke, a great trader, once said the quick and easy way to enter on on-going move after you missed its beginning is to wait for a down day (or days), and buy the next up day. That's as good a method to get over what is truly a psychological hurdle as any. I've sort of marked those points during the last rally on the SPX chart above. In that case, I'd suggest using the low of the day you enter or the low of the previous down day as the stop. Using the SPX chart, it looks as if you might be stopped twice using the previous down day stop, but by jumping back in on the next up day, would capture a considerable portion of the move on that rally.

Ms. Raschke also once said: "Never take a loser to bed." That's a great stop too, to say nothing of the fact it's a great lesson in life.

:)

"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."