Tuesday, January 15, 2013

Short-term GGT Timer Signals Exit as of Close Monday January 14

With the close of markets on 1/14, my GGT short-term timer has signaled that positions opened since 1/3/13 should be closed.

This timer call is based on the 4d SMA of the GGT Long-Cash Ratio (LCR), which is a simple average of 3101 stocks with respect to their overall Long/Cash status. A stock gets a "Long" rating if it is outperforming it's historical, optimized, moving average, rate of change of price, and volume action. It gets a "Cash" rating if it's price action falls below the optimized moving averages of price. 

The database started a deceleration on Friday, continued Monday, and has fallen from a LCR of 4.126 to 3.916. This is a 2-day reduction from the peak of 4.212 and is indicative of a short-term pullback. Short-term pullbacks can turn into long-term pullbacks so positions opened recently will be underwater fairly quickly.

This short-term signal call resulted in a gain of the GGT index, which closely resembles the performance of the VXF, of 1.08%.

If you have questions please post them in the comments field below.