Wednesday, March 31, 2010

Possible Timer State Change

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GGT employs two timers based on the Long-Cash Ratio.  They behave the same but have different time constants.  The shorter timer constant, e.g., the one that responds faster, has signaled a transition from CASH (-1) to CASH-LONG (0).  The other timer, which is slower and typically confirms the faster one after a few days of sustained trend change, is still in CASH.

Here at 6:20 a.m. on Wednesday morning futures are slightly down.  The way to play this timer is relatively simple -- watch the home page here and if you see ADV/DEC up significantly then you know we're headed to the upside.  If it's flat then you know we're going to continue to drift.  You get the idea.  If you see a move to the upside that is relatively strong then it's ok to look at the long side. 

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I'm traveling the next two days and will have limited internet access.  My next post will be on Friday. 

Keep an eye on the above but I'm still keeping much of my powder dry.

Regards,

pgd