Tuesday, May 18, 2010

GGT LCR Change Timer Signals MOVE TO CASH for 5/18

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With Monday's close, the GGT LCR Change Timer (fast) has signaled a confirmed moved to CASH.  This suggests that I should close all long positions and keep everything in cash, else trade contra ETFs.  Here is the chart:



The graphic above shows that the timer has moved to 0, and that the Long-Cash Ratio has failed to breakout to the upside, resulting in this change in state.  It is in your best interest to pay attention to this timer.  Had you traded in the VTI (Vanguard Total Index ETF) since the inception of this timer (August 2008) and bought/sold at the open the next trading day the position would be up 63.2% in this time.  Had you traded the IWM (Russell 2000 ETF) over the same time the position would be up 101%.  Had you traded the QQQQ's (Nasdaq 100), the position would have been up 74.4%.

Within a week or so I will be introducing the test history of a number of ETF pairs which seem to perform well with this timer.

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

Regards,

pgd