Sell in May?

The Seven Sentinels issued a sell Friday, which was not surprising given BPCOMPQ was already on a sell while the market posted that big red candlestick.

So much to worry about. Standard & Poor's downgrades among not one, but several EU countries, the Gulf of Mexico drilling platform explosion, which continues to leak over a million gallons a week of crude, and the Goldman Sachs fraud allegations to name a few of the major current events. It's usually difficult for a market to correct for long in such a dismal news environment.

Here's the charts:



Back to a sell, but it has been a volatile ride for a while now and neither signal has been able to escape the zero line for long throughout the month of April.



Still on a sell here too.



And here.



And BPCOMPQ makes seven.

All 7 signals are now flashing sells, which flips the system from a buy to a sell. But this is still a bull market until proven otherwise and sell signals have tended to not last long. But that will change at some point, and when it does it will catch a lot of dip buyers off guard. I will be following the SS into the G fund come Monday. But at least I have another IFT to get back in should the system flip again.

I'll be posting Top 15 and Top 50 data tomorrow. See you then.

 

[grandma]

hopefully, then, Monday will be the Monday we had gotten used to, and will close highly, highly, and highly UP !

 

[coolhand]

hopefully, then, Monday will be the Monday we had gotten used to, and will close highly, highly, and highly UP !

I'm hopin'. Trader's Talk is showing a lot of shorts and more than 50% bearishness. That's a good sign.

 

[lindalyc]

coolhand:
could you explain why your interpreting is different from Echo at TT:" Well all went to a sell except nyhl which sold on the old setting but right on the line with the new.
nymo did not make the filter either.
So no sell yet as far as i see." and IYB agrees.
I agree with your conclusion to sell. I don't seem to understand what Echo was saying. just puzzled. thanks
http://www.traders-talk.com/mb2/index.php?showtopic=118885

 

[coolhand]

coolhand:
could you explain why your interpreting is different from Echo at TT:" Well all went to a sell except nyhl which sold on the old setting but right on the line with the new.
nymo did not make the filter either.
So no sell yet as far as i see." and IYB agrees.
I agree with your conclusion to sell. I don't seem to understand what Echo was saying. just puzzled. thanks
http://www.traders-talk.com/mb2/index.php?showtopic=118885

I saw echo's post Friday, but didn't see Don's response till now. I also never saw Don's new SS settings until today.

Here's my read. Don's new settings did not go to a sell, but they're darn close. If we close red tomorrow, I'd expect them to roll over. If we close green, his system is good for at least one more day.

Feeling lucky?

His system did not go to a sell the last time my settings did either. And that was a good signal for him.

I'll be watching his site more closely now that so many of the links are working.

 

[lindalyc]

I must missed it, could you please show me where is Don's new SS settings?
thank.

 

[airlift]

CH,
I am having some difficulties with my p/c but, please try to see if you can define Don's new signals in relation to our IFT before noon. I thank you.

 

[coolhand]

I must missed it, could you please show me where is Don's new SS settings?
thank.

http://sevensentinels.com/issue/may-2010/article/seven-sentinels-explained

 

[coolhand]

CH,
I am having some difficulties with my p/c but, please try to see if you can define Don's new signals in relation to our IFT before noon. I thank you.

He's still in buy mode. He uses a 28 day trading high and low with respect to NYMO to help smooth out whipsaws in determining buys and sells. But the new signals are not a radical departure from what I'm using, which were his original settings. Using his new settings all signals are in sell mode, expect perhaps NYHL, which is sitting right at its 5 day EMA. Also, NYMO is not quite at its 28 day trading low, but it's close.

Using those settings the system is still on a buy, but it's not by much.

 

[airlift]

CH,
Tks. Futures can change of course, but Green so far. Since it is a marginal situation, I prbably will wait one more day before pulling out to G.