.
For the more aggressive of you out there, the short-term LCR Change timer moved to LONG yesterday. This indicates that we should purchase stocks and ETFs which are moving upward, and yesterday I provided a scan that fits nicely into HGSI to allow you to do just that. The signal came with the close of the markets, and we had a "heads up" of sorts -- http://www.finviz.com/ ADV/DEC was clearly on the side of the ADV stocks, indicating with high correlation that the LCR Change timer would move long. We'll see if this bounce works.
The Intermediate-Timer is still in cash, and no amount of market movement today will move it long. Although the 2d Force Index trend indicates that we are moving upward, the 13d FI is clearly negative, and by a large amount, so longer-term holdings should be considered off limits.
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Trading Plan for Wednesday
Short-term: continue to purchase stocks and ETFs that are above their 200d and those that have a 13d and 50d EMA of the price slope that is upward-pointing. You must be nimble, and protect profits daily.
Intermediate-term: sitting in cash.
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Please take ownership for your own trades.
Regards,
pgd
Wednesday, August 18, 2010
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