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Thursday, December 2, 2010

Thursday Morning

Well, what do you know!   Just as I suggested yesterday afternoon, my proprietary Momentum Change indicators have generated a new Buy signal, the first Buy signal since 9/1/2010.

It seems Mr. Market wants to rally.. question is, are new highs in the cards?  However unlikely that may seem at the moment, it is of course possible. We use other timing tools to anticipate market turns, and our timing tools have been looking for a decline in the very near future.  But the reason I worked to develop a Momentum Change model was so that I could get away from anticipating a change (and there are any number of hundreds of anticipative models, using hundreds of strategies), and instead being able to recognize change when it has begun.
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Our Momentum Change model has successfully produced 76 total SPY points of profit this year in 12 trades, and lost 11 points when we got stopped out of our last trade.  We will get long the SPY (or leveraged equivalents) today, and let you know at what price.

This could be a trade that only last a few days, so we will be watching very close.

Good Luck Trading.

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