How to exit
using Fibonacci Linear Regression Channels.
using Fibonacci Linear Regression Channels.
I don't often share the details of my IFTs, but since I've been on a tangent lately, I figured I'd show you the typical setup I look for. If it works for me, so be it, if not, then I'll adjust as necessary. This is the AGG chart I had going into Monday morning. Due to space limitations when posting pictures, when I show you Fibonacci levels, what I don't show are the projections. The grayish dashed line at the top is a 123.6% Fibonacci projection, based on the price range I chose.
When the market's opened I knew three things... #1 Prices gapped up straight to the 123.6% projection. #2 Prices opened near the top of the Linear Regression Channel. #3 Gaps get filled and when you ride up to the top of a channel, it's a good time to take some profits off the table.
So I took 75% out of the F-Fund today, and here is the new AGG chart, complete with newly drawn Fibonacci & Linear Regression Channels.
With 25% still in the F-Fund, I'm using it to hedge, should my new 25% CSI allocation go south. I did get the 1069 bounce I was looking for, but right now I see the markets as mixed because we didn't put in a higher high, and we barely made a higher low.
Best advice I have, if you're already out stay out, if you're already in (and absorbed the loss) I still think it's worth sticking around to see what will happen. I don't believe the bears have it in the bag yet.
Take care and trade safe...Jason
