shorts would be extremely rare right now as the system is in buy
pullback mode, Most shorts occur below the 200 day MA.
The only short that could occur would be an exhaustion short but
those are very hard to trigger. One of the Exhaustion short
conditions for example requires 46 consecutive closing days above a
19 MA with %R over 90%. Another one of the exhaustion short
conditions needs at lease 21 consecutive closes over a 10 day MA
with %R over 90 as well.
Other shorts besides exhaustion shorts that could occur would be
a 60 Stochastic 80 short, but that needs a pullback and bounce
where the 60 Stochastic finds resistance close to 80%.
Another trade that can occur is Straps but again you needs a
nice pullback and bounce where a stochastic is overbought while
price is still below an moving average
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Market update
Posted by matt on 21st of Aug 2018 at 12:56 pm
$SPX - Chart Link - my earlier comments the Jan highs being a magnet
IWM - Chart Link - NICE trade so far for IWM if you bought it even this morning on the open
Matt, what would it take
Posted by pebs on 21st of Aug 2018 at 02:42 pm
Matt, what would it take for the SPY System to start shorting the market?
shorts would be extremely rare
Posted by matt on 21st of Aug 2018 at 03:09 pm
shorts would be extremely rare right now as the system is in buy pullback mode, Most shorts occur below the 200 day MA.
The only short that could occur would be an exhaustion short but those are very hard to trigger. One of the Exhaustion short conditions for example requires 46 consecutive closing days above a 19 MA with %R over 90%. Another one of the exhaustion short conditions needs at lease 21 consecutive closes over a 10 day MA with %R over 90 as well.
Other shorts besides exhaustion shorts that could occur would be a 60 Stochastic 80 short, but that needs a pullback and bounce where the 60 Stochastic finds resistance close to 80%.
Another trade that can occur is Straps but again you needs a nice pullback and bounce where a stochastic is overbought while price is still below an moving average