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Nerves of Steel ...
There's been a downward trend in the S-fund all day and, as of this writing, the market is hovering at the 0% line. My charts indicate that it's going to require a HEAVY down day to generate a sell signal for tomorrow ... and it doesn't look like that is going to happen. So I'm easing off the trigger ... but my hand is still on the gun. : ) ( love those western metaphors )
All ... I know today looks bad ( down almost 1% at 11:18 EDT ) but my charts are indicating that we should hold the course today. Even if today is a -3 sigma day ( ie, the market loses a LOT ), my charts are only going to generate an ALERT signal. Anything better than a -3 sigma produces a BUY signal .... so, once again, my advice is to hold the course through today!
Possible alarm bells on the horizon ... my charts are generating an ALERT signal today.
Hey RMI,
Details? Not much ... if the market goes by +1 sigma or more, we're in the GREEN; 0 or -1 sigma generates an ALERT; -2 sigma or less generates a SELL. So far, it looks like we're in the 0 sigma territory.
I need to attach dollar/cent amounts to these sigma values ... it's next on my to-do list but I haven't gotten to that yet. It's a little difficult since these curves are best fit curves on top of Moving Averages. I *feel* it's doable - but I haven't expended much brainpower on it yet.
Dan
Nope, makes sense. I have seen others use -2 to +2 sigma signals (BB), but it really depends on the curve the data is based on. Do you use 20 day? 10 day? 10 week?