GZ, first of all, hats off for your call of SPX 1340 a month ago.
Congratulations!
Now, let's get to the nitty gritty.
The 25 day a-d is not a cycle, per se, but simply a 25 day a-d
moving average, right? For instance, you could choose a 17 day
moving average, an 18 ma, etc. - it doesn't make it a cycle - ?
Now, a key component of some trading systems is that if the "market"
makes a 25 day or 21 day or whatever high while the 25 or 17 or 18 or whatever a-d ma is below zero, that is a CLASSIC sell signal.
So, as keeper of the 25 day a-d cum or ma, would you not agree that the jury is out on whether the uptrend of same will continue or not,
and that it is "high alert time" as to whether that failure is a sell signal
or whether a cross ABOVE the zero line would indicate a healthy market (as in it has to happen first, before it is declared healthy)?
Vitas |
