It is the end of the month and it’s time to look at our Long Term Timing positions.
Nov 302009
The latest Commitment of Traders (COT) numbers are out.
A price chart is an attempt to model relevant aspects of price change. Price change is not linear displacement, whether vertical, horizontal or oblique. Nonetheless, price change can be represented as vertical displacement and time elapsed as horizontal displacement. Such a model, however, invariably supports relationships that does not correspond to anything in the original process. The angular inclination of a trend on a price chart is a visually striking feature of this representation. Such angles have no intrinsic meaning for the price series, but this is one of the many factors (along with our facility for pattern recognition and wishful thinking) that contributes to our interpreting more from price charts than rigorous testing reveals is there.
– William Eckhardt
I think Michael Covel does a good job interpreting Eckhardt’s cerebral comment. I just want to expand on it because I think it’s important.
Nov 302009
The ATR Trading strategy has a new trade.
Nov 302009
Member question: Hi Larry, I am a new subscriber, I am still learning.
I do not see any bear funds eg. sds,qid etc in your systems.
Why ?
Whether or not I use bear ETFs depends on 1. market conditions and 2. the strategy.
“The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
– John Maynard Keynes
It was a shortened week due to the Thanksgiving holiday, but on Friday — a half day of trading with many market participants elsewhere — the market opened sharply down in reaction to the Dubai debt crisis news. The U.S. dollar surged while stocks, precious metals and oil sold off.
The talk on Monday will revolve around what Dubai means to the markets going forward. I personally think the markets overreacted . I look at the Dubai situation as just another leveraged real estate development gone bad. And leveraged real estate deals are in trouble everywhere. It’s not clear to me that there’s any real news there.
However, talk is cheap and the truth is that nobody knows. All we have, and all we need, is price — the markets themselves. So let’s focus on what we have.
Nov 272009
I added live, embedded charts for ATR Trading, RSI Reversal, and Long Term Timing today. They should help members track sell signals, and potential sell signals, without having to wait for me to post them.
As a reminder, most exchanges close at 1 pm Eastern today. The day after Thanksgiving is supposed to be a quiet, not-much-going-on, type trading day. But Mr. Market doesn’t like to do what he’s supposed to do. With the Dubai news there’s lots of unexpected action.
For those members following the RSI Reversal trades there may be some buy signals on the close if the markets close weak. So stay tuned.
For members,
members continue
Nov 252009
Today there was a signal to take profits on yesterday’s RSI Reversal trade. members continue
There was a new RSI Reversal buy signal today. members continue
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