Thursday, February 21, 2013

Getting closer

SPX is moving down again and is probably going to give a "sell" signal by tomorrow. Right now it's challenging SMA 120 for the first time YTD. 

I will continue to give you updates by the end of the day or tomorrow. It is important that you are entering the short side at the right moment. Talk to you later.

When I started this blog, a few years ago,  I used the EMAs crossing on hourly chart. Unfortunately, it gave me too many whipsaws in the last one and a half years so I changed it to two hours chart. The difference, of couse is that the two hours chart gives me less whipsaws but at the same time allows me to enter the market on the long and short sides at less better prices that the 60 minutes chart. I hope market will get less volatile in the future so I can go back to hourly chart. 

On hourly chart I already have a "sell" signal, but I will wait for the two hours chart to give the "sell" signal for reasons I mentioned above. 

Keep in touch!

After hours update:

SPX jumped up after touching SMA 120, a move that I saw before. Even if we are going to get a "sell" signal tomorrow or next week don't forget that we are in a bull market, therefore the plunges are short lived and you need to move fast to seize the gains. Also keep in mind that during the most recent corrections market gave a sell signal then moved up but it didn't establish a new high before plunging again.

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