I think this is what we have been trying to achieve....just let the system work for you without over-thinking. Hopefully, this trade will work out and we will all have that much more confidence in the system :) So far so good!

Wouldn't this be the second entry on the Multi? The notification says third and just wanted to make sure I didn't miss something. :)

Any new downside targets for adding to the multi entry if we get a sell-off into the close?

Matt, thanks for keeping us posted and filling us in on the trending indicator. Nice trade so far! :)

I understand your frustrations but I think this system is a very very good system and just what I have been looking for, for many years. I think it does come down to emotions and money management. Remember its a reversion to the mean system so most of the time, we aren't going to feel good :)

Possibly, your idea of watching it for awhile or trading a smaller amount is a good one. That may help you build your confidence back up. Maybe let the market develop a solid trend in one direction or another. This change in possible overall trend has probably affected things a bit. 

I wish you and us all good luck with the system and I think it will play out with patience.

Thanks Matt, I think it's going to be a good one!

Hi Matt,

You may not have understood my post completely. My jest was that I appreciated your posting that the trade would sell the next morning, earlier in the day. That way, following my own risk tolerance, and knowing that I'm just not that comfortable holding overnight in this type market, I could manage yesterdays trade.

I've seen many tweeks on this thread; options (which I don't use) and others and they have been pretty much accepted by many. I state in my post that I feel that the system is a guideline and also that any trading outside of that guideline is our own.

That's why on the first trade I lost out on the 1% but had the weekend peace of mind I wanted. On this trade I gained the 1%....thats all.

I am an experienced trader and did see the divergence yesterday so I used the knowledge. I'm not really that emotional but did over allocate by a small amount to the last trade which I have corrected. I believe you said use 10% of trading capital and I used like 20%. Believe me, I would never put all my eggs in one basket, especially not on a system that really hasn't been traded in real time for that long.

I absolutely love the spy system and I will say it has helped me wake up and look for other trading opps at times I may have let pass. I think you are doing a great job with it and will continue to follow it religiously.

Thanks!

Matt, did us a favor yesterday in giving us a heads up and I really appreciate that. He has said that we need to use our own money management techniques based on our risk tolerance with the system as a guideline.

With this in mind, yesterday, in the afternoon I placed a tight stop under my system positions with an intention to sell at the close if these didn't pick up. I knew my risk tolerance and that I had put too much in on this trade. I did this last time when Matt gave a "heads up" and I lost out on the 1% additional gain that the system booked. This time, I saved myself 1%.

I've seen others on here tweek the system to meet their needs as well. Even Matt, has bought outside the guidelines when he bought in the after hours market to get a better price on an entry. I just know that my risk tolerance is such that I don't like to hold overnight with this type of market. Futures are traded more than ever and gaps abound both for and against.

Just my thoughts on trading this system.

Will do!

I've been following Sprint (S) for some time. They broke out of a weekly triangle in March and quickly rallied. Now, it looks like it's retesting the triangle. Now that they are over $5, I think more institutional type investors will become interested.

One thing that may spur price increase as well would be that they will be testing the I-Phone:

http://www.computerworld.com/s/article/9217532/iPhone_4S_in_advanced_testing_on_Sprint_reports_say?taxonomyId=75

I'm watching this for a re-entry price. There's a gap at 4.8 if it goes that low in some type of panic sell-off.

I don't think it went quite as low as 23.5 but it is a real deal with PE in the 9s and lots of cash on hand.

I'm planning on it :)

LOL! Your going to nail it again Matt! Amazing how close to the closing price your levels have been.

Matt, do we have an answer yet as to long or not? Looks like there is some confusion as to closing price.

Mine closed right at 131.86; is this right?

Thanks Matt, I do like your pep talks and think it reiterates why this is just part of one's trading arsenal. I couldn't be happier with the latest trade and will have to admit as a person who is more of a swing trader and tends to fall asleep at the helm, your system is perfect for awakening me to some other trading opportunities too.

I agree as well Michael. I think it's helpful to hear other member's experience trading the system. I had also been thinking about trading IWM or MDY on a signal with part of my trading capital. 

I have been using the system as a way to gradually get invested in some longer term 401k type investments as well and one of those is a small cap index. I noticed that the smallcap index did quite well on this last signal. 

I'm sure Matt wouldn't mind as long as we all know that his results and research is based on trading SPY.

I thought I saw a post over the last couple days about trying to get more leverage out of the system while using a 401k to trade. 

I think most 401ks don't have choices for funds that trade double the indexes, other than if you are able to buy rydex or profunds. In most 401ks I have been in, they have a limited number of choices. 

So, It may work to invest in smallcap on long signals to get more bang for the buck. For instance, today, the smallcap index is up 1.1% as I type, while the S&P is up .7

Both are great moves but the small cap usually move like this and usually follow the overall market as well.  

Just another thought for those who have limited options. 

Happy Birthday Matt!

And what could be a better gift than your beautiful new baby girl... She's adorable!

Hi CW,

I saw your earlier post about this but since I know very little about futures and naked options I was really referring to having a position like an etf and selling calls against it to hedge, as the other poster had indicated. Sounds like what your doing works well for you and you understand how to manage it.

I own quite a few stocks with June expiration covered call hedges on them right now and have noticed this week that there has been substantial time deterioration in them too.