Mr Market opened strong this morning, after being higher overnight about 20 Dow points. At 8:30am, the new jobless claims were reported at 409,000, an improvement over last week which printed at an upwardly revised 438,000. Yet, with a print above 400,000 lost jobs, it means the economy continues to lose jobs, not gain jobs. But Mr Market liked the report, and promptly jumped another 20 Dow points, and opened nearly 50 Dow points higher than it had closed on Wed.
After a careful review this morning, even with the strong opening, the Proprietary Momentum Changes indicators are still as they were on 5/13. Meaning the major indexes are still on Sell signals, with the exception of the correlated Buy signals in the Dollar and the Bonds. Many people offering trading ideas like to point to the buy and sell signals as the the measure of their strategy, but I live in the real world, and limiting losses is my strategy to long term success. As of this morning, all of the trading ideas have been stopped out. I will be watching for an opportunity to re-establish new positions, or watching for a new Buy signal.
I will have some market comments later this morning.
Best To Your Trading!
Bill
Bill, as per usual, it will churn until all the shorts are either broke or gunshy about going short again. It never fails. It will screw with everyone until no one got the ball to bet short again. It will screw with the mind of all the discretionary traders/investors, and test the confidence of the system traders to the core.
ReplyDeletesc
ReplyDeleteTell me about it! I have sitting here anxious to put on some shorts, but afraid of getting whipsawed again.
Look at the charts of Q's, IWM, SPY and the DIA.. they are all at a place that should be shorted.. at least in my opinion... with very tight stops.. and yet here I sit.
I will look at where we are at 3:00pm and make a decision then
Bill