The purpose of this site is to share results of a trading system that I use for identifying both long-term and short-term trading opportunities. I take the time to do this because of my passion for investing and helping others succeed. The system helped me avoid the "Crash of 2007/2008" and every major correction since then. The cornerstone of my trading system are analyses of market liquidity to gauge longer-term market sentiment and equity and index options (put/call ratios) to identify short-term entry and exits.

This site is for information purposes only. Past performance of the trading system is not a guarantee of its future success. Please consider consulting a qualified investment adviser before making investment decisions.



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Thursday, August 7, 2014

Re-entry Strategy

I just wanted to share my approach for investing the cash that was recently sidelined. My plan is to deploy 50% of sidelined cash into the market when I get a signal from my short-term indicator. Based on projections from my model today, it appears that a bottom might occur on our about August 19 -- when this date becomes firm, I will post another update. If on the other hand, a positive (weekly) RSI divergence is formed OR the S&P breaks its trailing ATR3 stop which now sits at 1963, I will buy 100% of sidelined cash. I expect that this trailing stop will continue lower over the next 1-2 weeks. It's conceivable that the short-term indicator might "fire" first, so I might be re-entering the market in two stages. Although I'm not targeting any specific level, my Fibonacci analysis indicates strong support at 1860 and 1820.