20DMF

[Pascal]

The RT 20DMF closed at 1318.68 the short position that it took at 1315.12.

technically speaking, at the close, the inversed ETF's TEV was about 6% and I believe that it is still above 4%.

So, we will now wait and see if we cross down below -0.11%.


Pascal

14677

[brrim]

Pascal; What do you make, if anything, of the fact that the 20 DMF has been rising, but the 20 DMF Strength has been making lower highs and lower lows since it hit a high of 298.3% on 6/6/12?
Thank you.
Best regards,
Robert

[Pascal]

Pascal; What do you make, if anything, of the fact that the 20 DMF has been rising, but the 20 DMF Strength has been making lower highs and lower lows since it hit a high of 298.3% on 6/6/12?
Thank you.
Best regards,
Robert

Usually, the MF is very strong at the start of a big move.
Before the FOMC, the MF was rather quiet since traders had been waiting.
Just after the FOMC, the MF strongly moved down-up-down-up, to finish about unchanged.
This marks uncertainty and hesitation. It does not necessarily mean that we will reverse down from here.


Pascal

[pdp-brugge]

Pascal,

Am I correct to state that the 20DMF will go SHORT if the MF is (at EOD) below +0.11% porosity level?

[Pascal]

Pascal,

Am I correct to state that the 20DMF will go SHORT if the MF is (at EOD) below +0.11% porosity level?

No. This is not correct.

The 20DMF will turn short if one of these two events occur:

1. The 20DMF closes below -0.11% (note that the sign is negative)

OR

2. The extension of the inversed ETF is higher than 4%. At 12:31, the extension was -1.71%


Pascal

[pdp-brugge]

Tx for the answer.
Somehow I am always confused with the 20DMF rules...