Yes I actually wrote my

    SPY

    Posted by tom on 13th of May 2011 at 02:12 pm

    Yes I actually wrote my response to you from the short side instead of the long, sorry for that, so lets say the 60 stoch pops up over the 20 level on the daily but as that happens the 14 is basically or possibly overbought, I might then wait for the 14 to drop back to the 50 level or likely oven back down to oversold before entering (you could also scale in at desired levels).  The risk is that never happens and the stock takes off but while waiting for the 14 to become oversold what is the 60 stoch drops back below 20, well your thesis is probably over and you would normally be trying to decide whether or not to exit - in this case you were never in so you just start the process over again.

    Its an art not a science but just my thoughts.  Hope that helps!

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