We have not gone anywhere. We refuse to look at the markets in a monolithic way. We found out that one of our trading systems was broken. Upon further investigation we found that the parabolic entry we were using was dampening our results. In addition, we decided to replace our volatility stop with a parabolic stop. The reason was because the volatility stop was giving away too many profits. We saw too many good entries that became losses in our historical results. We spent countless hours fixing and improving our stock picking system. One of the things that we did was to independently backtest and optimize every entry parameter using 27 major stock market indexes and index etfs. We performed statistical analysis and tested the system with up to 40 years of New York Stock Exchange, NASDAQ, Dow Jones, and S&P 500 data. We are confident that the system can survive anything that the stock market can throw at it.
Where is the stock market? In our last post we felt the stock market was in a bear market scenario. We also hinted that the old paradigms of support and resistance could be changing with the advent of high frequency trading. We feel that support and resistance lines should now carry a margin of error up and down to accommodate algorithmic trading. Below are today’s chart of the indexes and their action. Did the markets found a bottom four days ago? We hope so because we have been long all along. None of our longs got stopped out during this latest down draft. In addition, no new short etfs flashed buy signals. However, we were biting our nails and questioning everything that we know about how to correctly pick stocks. We stuck to our discipline and our portfolios seem to be surviving and thriving in this market.
Dow Jones Index Stock Market Chart 7-8-2010.
Nasdaq Stock Market Chart for 7-8-2010.
S&P 500 Stock Market Chart for 7-8-2010.
A word of caution, volume on the long side is anemic for the start of a new bull market. Thread with caution as a retest of the lows of four days ago could be in order. Enforce your stops and selling discipline if things get rough.
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About the Author
I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
If you want to discuss stocks, options or personal finance you are welcome to follow me in Twitter (@smarkethacker) or drop me a line to smh@stockmarkethacker.com. In addition, consider subscribing to my RSS feed located in the top right hand corner.
Stock Market Update for July 8, 2010.
We have not gone anywhere. We refuse to look at the markets in a monolithic way. We found out that one of our trading systems was broken. Upon further investigation we found that the parabolic entry we were using was dampening our results. In addition, we decided to replace our volatility stop with a parabolic stop. The reason was because the volatility stop was giving away too many profits. We saw too many good entries that became losses in our historical results. We spent countless hours fixing and improving our stock picking system. One of the things that we did was to independently backtest and optimize every entry parameter using 27 major stock market indexes and index etfs. We performed statistical analysis and tested the system with up to 40 years of New York Stock Exchange, NASDAQ, Dow Jones, and S&P 500 data. We are confident that the system can survive anything that the stock market can throw at it.
Where is the stock market? In our last post we felt the stock market was in a bear market scenario. We also hinted that the old paradigms of support and resistance could be changing with the advent of high frequency trading. We feel that support and resistance lines should now carry a margin of error up and down to accommodate algorithmic trading. Below are today’s chart of the indexes and their action. Did the markets found a bottom four days ago? We hope so because we have been long all along. None of our longs got stopped out during this latest down draft. In addition, no new short etfs flashed buy signals. However, we were biting our nails and questioning everything that we know about how to correctly pick stocks. We stuck to our discipline and our portfolios seem to be surviving and thriving in this market.
Dow Jones Index Stock Market Chart 7-8-2010.
Nasdaq Stock Market Chart for 7-8-2010.
S&P 500 Stock Market Chart for 7-8-2010.
A word of caution, volume on the long side is anemic for the start of a new bull market. Thread with caution as a retest of the lows of four days ago could be in order. Enforce your stops and selling discipline if things get rough.
Popularity: 29% [?]
Related Posts:
About the Author