Posted by DigiNomad on 11th of Nov 2022 at 07:53 pm
Steve, I have heard this theory previously (Joe Terranova
mentions it often on CNBC). Sounds plausible, but what happened in
the last big rally over the summer? The market definitely crossed
above and held there for a good few days before failing again.
Seems like the rules maybe aren't followed as strictly as the CTA
firms charters mandate?
Digi - those levels change and CTA's go both ways (think of them
as momentum money). Yes they helped push up the markets last
August - they will turn around and sell just as fast IF support
areas are lost.
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Steve, I have heard this
SPX 4,057 is the long-term CTA momentum threshold; if stocks ...
Posted by DigiNomad on 11th of Nov 2022 at 07:53 pm
Steve, I have heard this theory previously (Joe Terranova mentions it often on CNBC). Sounds plausible, but what happened in the last big rally over the summer? The market definitely crossed above and held there for a good few days before failing again. Seems like the rules maybe aren't followed as strictly as the CTA firms charters mandate?
Digi - those levels change
Posted by steve on 12th of Nov 2022 at 09:09 am
Digi - those levels change and CTA's go both ways (think of them as momentum money). Yes they helped push up the markets last August - they will turn around and sell just as fast IF support areas are lost.