Wednesday, October 17, 2012

Signal Change as of Close of Markets on October 16th

With the close of markets on 10/16 the GGT indicators have moved long on all measured time scales. While this is somewhat suspect during OpEx week, I'm compelled to move long as my timers are better at performance than is my discretionary trading.

The short term timer has moved long due to the slope reversal in the Long-Cash Ratio on the 2d, 3d, and 5d moving averages:

The transition of these 3 time frames from a negative slope to a positive slope has historically signaled a good entry (today), and consequently, with the Elder Intermediate timer already long (see yesterday's post) as well as the already-long longer-term 13/65 timer, we have three confirming signals.

Suspect is OpEx week, longer timers already long (in the tooth) compared to the short-term timer, and a rocky election pending in 21 days. Nevertheless, I'm moving long in AAPL, IWM, QQQ, SPY, and VXF in various accounts, and will look closely at different stocks from the DIVA list  (those that are showing accumulation in the face of falling prices).