Short & to the point

Short & to the point
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It might be hard to believe, but last Friday the S&P 500 closed down -2.72% off the 2 May 52 week high, and price is trading at 83% of it's 6-Month high/low range. So while we ponder this 3-week downside bias, let's keep in mind the dominant trend is still to the upside.

I'm going to make this week's blog short, I've got lot's to do and nothing in the market to worry about. Pictured below is yet another system I use to measure buying & selling opportunities. I came up with the concept last year, but until recently didn't have a way to present the data to you. This is not a system I use exclusively, it's one of many I use, the trick is to know how to incorporate them together and that's something I've been working on. On the far right side, green circles identify buying opportunities, while red circles identify selling opportunities. Because this is a bull market it will be typical to see more sell signals than buy signals, but the buy signals are going to be more accurate. If we were in a bear market, the inverse would be true.

FYI, 20 May triggered a buy, the second buy triggered this year. The buy trigger is what it is, trade it at your own risk.

The system.






The arrows on this S&P 500 YTD Daily chart show where the triggers are.


Take care and trade safe...Jason

 

[Mapper]

Nice visualization JTH!
I really like your use of colors to visualize the sine wave frequency, magnitude and periodicity. One thing that jumps out at me is the strong correlation btw your individual metrics. Obviously I don't know what you are tracking and what your modeling goals are AND I know much of the market moves with strong correlation; having said that, I see a lot of blanket green zones and red zones which lends a lot of visual emphasis to the periods. I also see you have a couple of columns that are consistently down but get "less negative" at times when other metrics are green (+). Either way, I really like that a lot of information is available with a quick glance!! Good work!
Any chance you could add numeric S&P levels (or whatever major index you are modeling) to the right of the buy/sell dot?

 

[JTH]

Any chance you could add numeric S&P levels (or whatever major index you are modeling) to the right of the buy/sell dot?

Thank you, the chart is an overall index indicator, covering all U.S. Markets, to include the S&P 500. I may incorporate such a numeric indicator into the finished product, but for now, a green circle indicates a 90%tile trigger.