Tuesday, May 31, 2011

5/31 10:50

I was able to enter stock short ETFs this morning.  These should be good until July.
The longer trade view is embodied not only in the longer-trade ruleset of I1, which states:
Rule# 4) For longer-term traders:

a) stay long until final peak or until it falls below 9.0, whichever is lower.
b) stay short as long as next peak <3.0.
c) ignore I1 moves lasting less than 1 week or with a swing < .5.
This is in the Intro and Concepts section.  According to this ruleset a longer trade will be short until mid-August.

The longer trade is also in the 30-day M/A of I1 which has a rule requiring shorts to wait if the 30-day I1 is above 6.5 until it returns back to (under) 6.5.  This occurs today.

So, I got a nice position entry ahead of what should be a big move into August.  The entry level was close to the upper envelope of the critical M/A, so I have a short stop-loss.  Life is perfect.


  1. Good morning, Steve.

    Hope you had a great holiday weekend and had fun with your travels.

    Are you still using 150 EMA on the DJX 1 min chart to calculate critical support and resistance? (The reason I'm asking is that my numbers are coming out a little different than yours.)

  2. Steve, what do you see happening with oil, short term, and through the end of the year?