No - the SPY Pro system is currently in a long position from Oct
9th, it is in the 34 Stochastic hold trade as I discussed before
and will continue to hold based on that until 34 Stochstic crosses
below 80%
If the system was in a flat position, then YES it would look to
do a quick exhaustion short as price has been above the 8 day MA
for more than 20 bars now with overbought %R over 90%.
However since the system is in the long trade it will not
exit the long to enter that short trade.
today is the 22nd day above the 8 day MA with the 8 length %R
above 90%. The stats show 88% winning trade, if one shorted
today and closed the position when price closed back below the 8
day MA
HOWEVER if the condition holds tomorrow, the 23rd day, the odds
jump up to 100% winning trade, these stats are for the SPX cash
going back 30 years. Max draw down was only 1.4%
so basically, if price holds up tomorrow, we'll have a condition
that has only occurred 6 times in the last 30 years on the SPX
cash, and within 4 - 5 trading days price closed back below the 8
day Ma for a 100% condition.
Posted by jsliedre on 18th of Nov 2014 at 03:21 pm
It is day 23 of SPX being above its 5 EMA. This has never
happened before. Also, the last 6 days has had the lowest
volatility/price movement in 40 years.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Will any of the SPY systems short this market?
Posted by jsliedre on 18th of Nov 2014 at 02:59 pm
No - the SPY Pro
Posted by matt on 18th of Nov 2014 at 03:36 pm
No - the SPY Pro system is currently in a long position from Oct 9th, it is in the 34 Stochastic hold trade as I discussed before and will continue to hold based on that until 34 Stochstic crosses below 80%
If the system was in a flat position, then YES it would look to do a quick exhaustion short as price has been above the 8 day MA for more than 20 bars now with overbought %R over 90%. However since the system is in the long trade it will not exit the long to enter that short trade.
is there a picture of
Posted by himsa on 18th of Nov 2014 at 03:56 pm
is there a picture of the currenty spy pro and the the 34 stoch?
I showed it in the
Posted by matt on 18th of Nov 2014 at 04:04 pm
I showed it in the weekend general market newsletter. and on SPY daily you can just add a 34 length stochastic to your chart
I've discussed this in detail before with past videos, you can find them by doing key word search on the blog, here's a search link
http://breakpointtrades.com/blog/search.php?search=34+stochastic+spy+pro+system&topic=All-Topics&poster=matt&startdate=&enddate=&page=1
Thanks Matt!
Posted by jsliedre on 18th of Nov 2014 at 03:51 pm
Thanks Matt!
today is the 22nd day
Posted by matt on 18th of Nov 2014 at 03:47 pm
today is the 22nd day above the 8 day MA with the 8 length %R above 90%. The stats show 88% winning trade, if one shorted today and closed the position when price closed back below the 8 day MA
HOWEVER if the condition holds tomorrow, the 23rd day, the odds jump up to 100% winning trade, these stats are for the SPX cash going back 30 years. Max draw down was only 1.4%
see the image
so basically, if price holds
Posted by matt on 18th of Nov 2014 at 03:50 pm
so basically, if price holds up tomorrow, we'll have a condition that has only occurred 6 times in the last 30 years on the SPX cash, and within 4 - 5 trading days price closed back below the 8 day Ma for a 100% condition.
Sounds like a good spot
Posted by jreeves197 on 18th of Nov 2014 at 03:49 pm
Sounds like a good spot for some of those vix etf's.. tvix, uvxy. Thoughts?
Will any of the SPY systems short this market?
Posted by jsliedre on 18th of Nov 2014 at 03:21 pm
It is day 23 of SPX being above its 5 EMA. This has never happened before. Also, the last 6 days has had the lowest volatility/price movement in 40 years.