Our Very Big Picture Bias

    Posted by johnc on 2nd of Jan 2012 at 08:47 am

    has to remain to the downside as another month goes by and we are unable to claim the high ground above the 12 month moving average.  As you can see, the 12 month does a nice job of containing price movement.  At this stage I would call this price action a potential change of trend.  The key word being potential.

    It is encouraging that we have not fallen dramatically away  from this area and also that we have edged slightly above the closing of dominant bullish engulfing candle in October.  Yet, until we can maintain price above the 12 month MA, we are wise to maintain a defensive posture.  Keeping your share size smaller when long, and our trades to the upside quicker, is a good way to minimize risk.  Patience will be rewarded here, as it will enable us to move to the right side of the market, when this potential trend change is over. 

    SPX Monthly

    Thanks for the chart johnc

    Posted by bauer on 3rd of Jan 2012 at 08:25 am

    If I am looking at your charts correctly, 1241.05 is the 12 month moving average and the S&P closed the month out at 1257.60.  Can you please clarify what you mean when you say the S&P is unable to close above the moving average?  Are you looking for multiple closes above the 12 month because the S&P is clearly above as of 12/31?

    Chart listed by JohnC is

    Posted by jdaswani on 3rd of Jan 2012 at 09:19 am

    Chart listed by JohnC is using a Simple Moving Avg, You are using an Exponential Moving avg.

    bauer -- you can see

    Posted by bkout3 on 3rd of Jan 2012 at 08:36 am

    bauer -- you can see the value for the 12 month ma in the upper left at 1280.76

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