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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Friday, June 26, 2015

Pins and Needles Kind of Week

I wanted to update my readers that my macro indicator, which is updated every Friday, is not showing any additional signs -- bullish or bearish. If a top is forming, I fully expect to see additional gains in this market which is customary as "smart" money distributes their holdings to the gullible. The key to any rallies will be to assess whether relative strength and volume indicators support a continued bullish trend or the aforementioned (bearish) distribution. My short-term indicator which assesses speculative behavior in the options market appears as though that it will signal a sell early next week. This combined with the fact that the weekly RSI traced a bearish divergence today caused me to trim my holdings at or abouts S&P 2100 by selling holdings that have shown weak relative strength. As I mentioned in my prior post, if the S&P breaks 2071 to the downside, I plan to take more significant steps to reduce alpha.