Friday, March 19, 2010

3/18 1:10

The convention is my wife's thing.  Tagging along for marital accord.  Going back in a few minutes.
The following is a key to my tactical use of I1.  If I1 is on a buy or sell signal then I buy I1 bottoms or sell I1 tops. 
I1 will be bottoming today at close.  I will not short again until either 4/2 which is a sell signal top or DJI breaks 1.2% below its 5-minute, 380 unit M/A. 

The reason I sold most of my shorts early is because there was a 5-wave down and it was coming close to this M/A.  1.2% below 10,700 is 10,560 which currently would be the only point after today that I would short until 4/2.  This shorting level will be recomputed daily until the DJI broke it, at which point the computed level would hold.  I still own DXD into the close.

2 comments:

  1. Could that happen, the market move right down to 560(it would take another wave series down so the waive counts do not stop till they stop in any direction) and if it does you left alot of money on the table selling your short's?

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  2. Simple tactical rules:
    1) I1 buy signal, I cannot short during it
    2) I1 sell signal, I cannot go long during it
    3) I1 uptrend, OK to buy small at I1 bottom, but must wait for 1.2% break of 5-min, 380 unit M/A before going short and the I1 move must be less than 1
    4) I1 downtrend, OK to short small at I1 top, but must wait for 1.2% upside break of 5-min, 380 unit M/A before going long and the I1 move must be less than 1

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