I'll discuss this in the newsletter in more detail, one of the
SPY reversion to mean systems went long at the close, the QE MOMO
sub system.
I did not see the trade at the close otherwise I would have sent
it out. Also Tradestation was not showing the trade until I
rebooted the system about 30 min ago. I decided not to send it out
after hrs so I'll just discuss it and follow up on it.
The condition only exists when the 60 Stochastic length is >
87% and after a faster oscillator/indicator become oversold.
Basically the 60 Stochastic has to be in that momentum condition
where it's strongly above 80%, which is something I've discussed
before with the market on a non-system basis.
Posted by chartboy on 23rd of Feb 2021 at 06:41 am
Yes, they do. But that is not what was happening yesterday.
There is a big difference between a post Exp hangover where
position need to be settled causing weakness on Monday and
liquidations that cause a gap down that breaks the neckline of a
meaningful Head and Shoulders and then fails.
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SPY reversion to mean systems one went long
Posted by matt on 22nd of Feb 2021 at 07:02 pm
I'll discuss this in the newsletter in more detail, one of the SPY reversion to mean systems went long at the close, the QE MOMO sub system.
I did not see the trade at the close otherwise I would have sent it out. Also Tradestation was not showing the trade until I rebooted the system about 30 min ago. I decided not to send it out after hrs so I'll just discuss it and follow up on it.
The condition only exists when the 60 Stochastic length is > 87% and after a faster oscillator/indicator become oversold. Basically the 60 Stochastic has to be in that momentum condition where it's strongly above 80%, which is something I've discussed before with the market on a non-system basis.
Thanks for the heads up.
Posted by timebandit on 22nd of Feb 2021 at 07:15 pm
Thanks for the heads up. Will check for your comments in tonight's newsletter.
yeah well you know how
Posted by matt on 22nd of Feb 2021 at 09:32 pm
yeah well you know how it will work, the market will end up gapping up nicely tomorrow morning since I didn't email it out, that's how fate works LOL
Let me sell my SPY
Posted by retirefire on 23rd of Feb 2021 at 06:33 am
Let me sell my SPY puts at open... LOL
I was reading somewhere most
Posted by arun on 22nd of Feb 2021 at 10:42 pm
I was reading somewhere most of the corrections that happen around options expiration spillover into the monday and then reset.
Yes, they do. But that
Posted by chartboy on 23rd of Feb 2021 at 06:41 am
Yes, they do. But that is not what was happening yesterday.
There is a big difference between a post Exp hangover where position need to be settled causing weakness on Monday and liquidations that cause a gap down that breaks the neckline of a meaningful Head and Shoulders and then fails.