Posted by sbaxman111 on 2nd of Jan 2014 at 12:53 pm
On Friday the NYA closed with an RSI-2 reading of 99.81% and had
been above the 99% level for 3 consecutive days. The Dow closed
with a reading of 99.61% and had been above 90% for 9 consecutive
days.
Today the RUT is at an RSI-2 reading of 11.11% at almost 12:45
pm. This 88 point one day drop within the 8 major indexes that I
track is often followed by a short-term reversal the next trading
day when the 1 day move is 80+ points. 90 point one day moves have
a very high % of producing a winning one day trade over the 13+
years of data that I have.
I use the 200% Long and Short RUT etfs or mutual funds to
execute these potential trades. The Rydex 200% RUT L/S funds made
just under 40% lasy year taking this type of one day trade. There
were 49 trades in 2013 using this methodology - 14 LOST MONEY.
Obviously an increase in volatility provides better opportunities
for this type of trade to be a winner.
The NYAD indicator is also at an extreme short-term oversold
condition. It is below the -1000 level and also below the 20,1.25
custom Bollinger Band setting that I use with this indicator to
find short-term extremes. The RSI-2 reading for the indicator is
also below the 20% line. A Long trade here at the close today would
have a target of a close back above the 9 day exp line.
RSI-2 Possible Long reversal trade today
Posted by sbaxman111 on 2nd of Jan 2014 at 12:53 pm
On Friday the NYA closed with an RSI-2 reading of 99.81% and had been above the 99% level for 3 consecutive days. The Dow closed with a reading of 99.61% and had been above 90% for 9 consecutive days.
Today the RUT is at an RSI-2 reading of 11.11% at almost 12:45 pm. This 88 point one day drop within the 8 major indexes that I track is often followed by a short-term reversal the next trading day when the 1 day move is 80+ points. 90 point one day moves have a very high % of producing a winning one day trade over the 13+ years of data that I have.
I use the 200% Long and Short RUT etfs or mutual funds to execute these potential trades. The Rydex 200% RUT L/S funds made just under 40% lasy year taking this type of one day trade. There were 49 trades in 2013 using this methodology - 14 LOST MONEY. Obviously an increase in volatility provides better opportunities for this type of trade to be a winner.
The NYAD indicator is also at an extreme short-term oversold condition. It is below the -1000 level and also below the 20,1.25 custom Bollinger Band setting that I use with this indicator to find short-term extremes. The RSI-2 reading for the indicator is also below the 20% line. A Long trade here at the close today would have a target of a close back above the 9 day exp line.
http://stockcharts.com/h-sc/ui?s=$NYAD&p=D&yr=0&mn=2&dy=0&id=p22579059572&a=201166472&listNum=1
Do you mean long UWC
Posted by coolhat on 2nd of Jan 2014 at 02:28 pm
Do you mean long UWC or IWM at close?
IWM NO LEVERAGE - UWC
Posted by sbaxman111 on 2nd of Jan 2014 at 03:08 pm
IWM NO LEVERAGE - UWC OR UWM 200% - TZA 300% LEVERAGE......I NORMALLY USE THE 200% FUNDS AND SAVE THE 300% STUFF FOR INTRA-DAY.
AT 3:05 PM THE 1 DAY POINT DIFFERENTIAL IS STILL 87 POINTS FOR THE RSI-2 VALUES