Wednesday, December 15, 2010

Short Term Timer Confirmed CASH, Intermediate Timer LONG, Stay the Course

Meeting Reminder:

There is a monthly meeting this coming Saturday, December 18th, from 1 p.m. to 3 p.m. at the Great Falls Library, 9830 Georgetown Pike, Great Falls, VA  22066.  The GGT, LLC investment club will meet immediately following the advertised meeting.  WebEx information will be provided in the Yahoo! groups.

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I have meetings today hence the brevity in this posting.

Summary

  • The LCR system is healthy, with all the slopes of the monitored EMAs (5d through 65d) pointing upward.  This is bullish on these time scales.
  • The "slope of the slopes" within the LCR system have fallen 4 of the 5 last trading days.  This is normal-to-bearish market behavior, but if this continues onward to 3 or 4 consecutive days, we know that this trend is in trouble.
  • The Pricing system is healthy, with all the slopes of the EMAs pointing upward.  Like the LCR system, this is bullish on these time scales.
  • The "slope of the slopes" within the pricing system have seen two solid days of downward movement.  If we see four days then we know that this trend is in trouble.  
  • The Short-Term LCR Change Timer is in a CONFIRMED CASH condition (-1).  We are at least 2 days from seeing this move long.
  • The Intermediate-Term Elder Force Index Timer is LONG.  This is telling me that it is okay to purchase stocks on the LONG side.
  • The GGT strength index fell for the second day.  Nothing here to get worried about, and the level of 0.674 suggests that there is plenty of upside room.
Overall, I've been pruning my weaker stocks from the portfolios.  I am not selling to lock in profits, as many of the holdings I have still retain solid chart patterns.  I'm willing to tolerate a drop below par for those equities that have good Elder patterns.  In short, I intend to stay the course with the strongest of holdings.

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Remember, you are responsible for your own trading decisions, and I am not.  Please take ownership for your actions.

Regards,

pgd