Friday, March 19, 2010

GGT LCR Change Timer Confirmed CASH

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Lackluster price action across the GGT database yesterday caused the Long-Cash Ratio to fall from 3.532 (2483/703  Long/Cash stocks) to 3.305 (2446/740).  While not a big jump in the cash side, it's obvious that we're splitting hairs and the market is struggling.  With this the LCR CHANGE timer (slow) has confirmed the move to CASH, and both LCR Change Timers are now in cash.

Correspondingly, I sold all of my positions that were below water (ROI < 0%) and placed 1% Trailing Stop Losses on all positions, except my contras, that are above water (ROI > 0%).  If the market continues higher today I will gain in these, if the market falls they will get stopped out for a profit.

Quad witching day today so anticipate volume will be quite high.  Action near the end of the day will be critical, as the 1150 level of the .SPX will be viewed as a major psychological test of support.  Futures are up slight as I write this, so we may move higher in the next 6+ hours.

I have decided not to add to my positions today, content to watch the markets do what they must do.

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Remember, you are responsible for your trading decisions, not me.  Do your own diligence.

Regards,

pgd