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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Monday, September 9, 2013

My patience might pay off

So if the market's momentum persists, it's likely that my long-standing target of 1686 will be reached.  My options model isn't giving any clear signals but it is possible that it will generate a sell (short) signal in the next two weeks.  The options market is exhibiting very low put/call ratios -- a sign that the market is very exuberant.  If traders start to layer on puts, it won't take much to change the market's upward bias to the downside.  My only issue at this point is that my longer-term futures model is indicating that a bottom (if the market were to correct) is near.  Preferably, I would like to take any short positions soon while my macro-level indicator is still pointing downward.  Taking any shorts after say the 18th of September might entail greater than average risk.
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