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, January 8, 2015

Here we go again! Another "V" bottom

So these V bottoms are becoming commonplace. I resisted the urge to buy into the last rally that began on December 17 because the money flow indicators didn't support the huge run-up to 2093. Since then, the market retraced its gain down to 1992 and money flow indicators reverted to near their downward sloping trendline. However, today, the money flow indicators are penetrating their downward slope to the upside and the market is roughly near resistance again -- it's now 2062 and there's minor resistance at 2076 followed by 2092. The other problem I have with this set-up is that my short-term indicator is going to fire a sell tomorrow. My short-term indicators are inherently less reliable but I need to recognize that too many flags are red and that I think it's best to proceed with caution. The only thing in favor of a continuation of this rally is that the money flow indicators aren't tracing a negative divergence.