How do you use these signals ? Do you act on them at the end of the day or the open next day ? In other words did you cover your shorts and go long already or waiting for tomorrows open ?
They are for the open of the next day. This is a market-timing system I developed to have its signal after the close so one only has look at it once a day, and put in the order for the open the night before. It is geared to both longs and shorts but as it turned out longs are more important over the long haul and the next day's open is better than the previous day's close probably in both cases because of the market's long-term bullish bias.
This week has been a pretty good example of the open versus the close. I had a sell signal on Monday's close and sold into that gap up Tuesday. Gaps go both ways but more often than not it goes like that.
The short signals were profitable in 2008 and 2011 (of course) but not much at any other time. In other words, being in a bull or bear market matters.
These days, I don't do much shorting and if I do it's usually no more than a day trade. When the market signals are short, some stocks are worth an over-night risk (for example, coal stocks), and some limited bearish option strategies, but I think being short in a bull market is dangerous all the time. I like to talk about it, but generally speaking I'm either long or in cash, personally choosing safe over short.
Good luck and good trading.
"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."