You're welcome, Mike... yes, it was another great week, and I have to say that much of the credit can be given to my new near term indicator... I've been working on it for some time and I only started using it about a month or so ago... so far, I've made 4 trades using this new model and I've had 4 incredibly successful trades... I tested it in real time for more than a year, about 14 months, and the results were truly impressive... I'm not saying it's perfect, nothing is, and one might say that only one year or more of testing really isn't enough time, but considering the fact that I get a signal from this indicator about one a week and with such a high success rate, I think I can feel relatively comfortable using it to navigate these markets within the boundaries of my main model... I can only think of maybe two occasions over the past 14 months when the near term indicator became iffy although the trades still offered a good profit before resuming in the direction of the main model trend...
The only thing about this indicator is that I still can't tell how much of a move the market will make on each signal, but I'm already getting a feel for this over time... what I'm already finding is that the more over bought or oversold the indicator becomes before a signal is given, the bigger the market moves in that direction, and this makes good logical sense as well... and right now, the last time this indicator was this overbought was on April 2nd, and from that date the SP sold off for about 55 to 60 points...
Of course, this is not to say the market must or will sell off right now at all, no signal has yet been given, but just that it is undeniably true and factual that as of yesterday this market is just as overbought as on that date and it can still become more overbought if this market continues to rally...
GZ |
