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.



Follow to Get Alerts on New Posts

Tuesday, December 9, 2014

Took some profits

My short-term indicator flashed a sell signal last Friday but even though other short-term indicators I track (e.g., money flow) were confirming that a correction was possible, I didn't take any action. I didn't because, the longer-term (weekly) indicators such as RSI were not yet tracing any divergences. My objective for this week was to watch out for any divergences (i.e., a close below 2072) and to possibly take profits on 50% of core positions. Given the nature of weekly indicators, I would normally wait until Friday to draw any conclusions. However, given the apparent shift in momentum, I took sold 50% of my core positions this morning at S&P 2040. The next key level is 2027 which represents the ATR4 trailing stop. A break of this level will lead me to sell 75% of remaining open core positions.