For the times, they are a chang'n!

Blogger was down this morning.... came back up about 1:00pm... just in time for an afternoon update.

The proprietary Momentum Changes indicators have been sorting themselves out the past few days and have gotten beyond the violent price changes that have caused so much confusion the past 2 weeks.  With the mess the market has created, the only people with any idea of what to do have been the day traders..... for a day trader, 10 minutes can be a trend they consider tradeable.

I am going to make some changes in this blog that I hope you will find useful.  I spend most of my time working with the major indexes, as it seems there is more useful data generated for the widely followed indexes, as compared to the data generated for individual stocks.  What I mean is that the Momentum Change signals generated in the indexes and the ETF's tracking the indexes are more reliable.  The indicator system also works with individual stocks, but the best information is only available in the most widely traded companies, like AAPL or GS or XOM.

I have also found that it is preferred to track momentum in the un-leveraged ETF's like SPY and DIA and QQQ as opposed to the 2 and 3 times levered ETF's like TZA or SDS or QID.  So I will report on the Momentum Change signals for the ETF's tracking the indexes, and not the momentum for the levered ETF's.  I will report the current signals for the ETF's tracking the indexes in a separate widget, and then trade recommendations in another widget.  Hopefully, you will find the information more useful.  I will have these new widgets completed this week-end and they will be up and running by Sunday.

For the past 2-3 days, the indicators have been smoothing out, and I think they have caught up with the current trends in the market.  As you might guess, the signals have turned, or are turning Bearish.  At the end of today's trading, I feel confident that I will have enough data to again make some trading recommendations.  But I want to re-enforce the practice of always using Stop Loss orders to protect capital.  Stop Loss prices will be set sufficiently close to an entry point to protect against any large loss, while at the same time, allowing a small margin to give the trade a little room to work out.

I am looking forward to getting back into the action next week with renewed confidence and direction.

Best To Your Trading!

Bill