Friday, May 15, 2015

Signal Transition - Short-term timer fires LONG; Close of Markets May 14

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Summary:  The short-term timer has transitioned to a LONG status.  This reduces the cash target from 66% to 33%.  Time to deploy capital.

Timer Status


With Thursday's action, we were pushed over the top and now the short-term timer is LONG.  The combination of both the short-term and long-term timers being LONG indicates that we should be buying the markets at the time, with a cash target of 33% / equity target of 67%.

LCR Table


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The transition of the 5d and 8d to "green" kicked the short-term timer into gear.  The green on the right side of the table gave me confidence to start buying.

Cumulative Tick


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The cumulative tick chart above is as of 11:49 a.m ET on Friday.

The trend since the 5/12 low has to come off the bottom in a controlled manner.  Overall, the transition of the "white" above "red" in the cumulative tick pattern shows me that buying is continuing today although the indexes are not showing the gains.  I like this setup, and I'm working hard right now to identify positions and place appropriate orders.

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Strategy

As always, I am placing BUY STOP orders on all candidates.  The level for the buy stop is 1.001% above the previous high.  The order is active after 9:45 a.m. ET.  If the order does not fill then I reduce the buy stop to the next level, provided that the stock or ETF still has a GGT long recommendation.

Pickings are thin right now, so I'm having to double up on size of positions in the transition from 33% equity to 66% equity.  This is okay, but it's not ideal.

All watchlists are updated and are in the shared Dropbox folder.  Stock and ETF transactions are also in the shared Dropbox folder.  If you are not a member, send a note to me at pduncan [ at } v % t } dot [ e d u   (fix the address as necessary - I messed it up because of the web bots who crawl for email addresses).  Use "DROPBOX" in the subject field.  Also expect to be added to my Yahoo! group, as it's the only way I can communicate with you.

Most of you know I attended Virginia Tech many years ago so the vt.edu after my name should be obvious.

Regards,

pgd