GDX and IWM Cluster Strengths for June 6, 2011

[grems8544]

It appears that the more negative the number --- the more positive the return potential. Am I reading this correctly?

If we are looking for a short entry, then yes, your interpretation is correct.

Also is a NEUTRAL for the short setting saying that I do not have very good odds at making a gain.

My interpretation is that your chances of winning the position are less than if the signal is showing a STRONG short setting. It can still work in your favor, BUT, review the FAQ, specifically the charts that show the R/R as you move further from the original entry signal. The graphs clearly show that days since signal result in lower gains ....

How does the built-in Multi Pivot 1/3 risk return ratio factor in to the robot signals?

I have to defer this to the masters ... I can't clearly answer this from my study of individual FAQs.

[slgerritz]

If we are looking for a short entry, then yes, your interpretation is correct.



My interpretation is that your chances of winning the position are less than if the signal is showing a STRONG short setting. It can still work in your favor, BUT, review the FAQ, specifically the charts that show the R/R as you move further from the original entry signal. The graphs clearly show that days since signal result in lower gains ....

I have to defer this to the masters ... I can't clearly answer this from my study of individual FAQs.

Thanks Paul. I feel like I'm on a role now, so maybe I can get away with one more question for now.

The 20 DMF chart has given a short signal. It uses the S&P 500 as part of the graph. Do I use this chart to either buy,cover or short the the S&P 500 (broad market) or can I assume it should be viewed as factor when trading the leader list? I will save my upcoming ETF questions for latter.
Thank ahead of time.
Steve

[brrim]

Billy; The MS1 of 81.46 and QS1 of 79.32 seem based on the MPP from May and the QPP of the 1st quarter.
Do you switch to June prices and prices from the 2nd quarter only on 7/1?

Best regards,
Robert

[nickola.pazderic]

Billy--

I think the analysis is fascinating. Until I joined this group I added daily support, resistance, and pivot points to my intra day 5-min chart of the SPY. I used these points to organize some day trading. I would find these everyday on the Prodigio trading platform at Think or Swim. I would also mark up my IWM charts in a similar manner.

I wish to know: Do you publish the daily, weekly and quarterly pivots? I'd like to mark up my weekly and monthly charts similarly.

If this question has been covered previously, my apologies.

In any case, thank you very much for your efforts,

[Billy]

Billy--

I think the analysis is fascinating. Until I joined this group I added daily support, resistance, and pivot points to my intra day 5-min chart of the SPY. I used these points to organize some day trading. I would find these everyday on the Prodigio trading platform at Think or Swim. I would also mark up my IWM charts in a similar manner.

I wish to know: Do you publish the daily, weekly and quarterly pivots? I'd like to mark up my weekly and monthly charts similarly.

If this question has been covered previously, my apologies.

In any case, thank you very much for your efforts,

Nickola,

I use my proprietary software but you can easily use this excellent online spreadsheet often recommended by Maxime. Many forum members are using it with satisfaction. There may be some very minor differences due to database sources. I use Yahoo Finance data.

http://bit.ly/hQdjAs
Billy

[manucastle]

Nickola,

I use my proprietary software but you can easily use this excellent online spreadsheet often recommended by Maxime. Many forum members are using it with satisfaction. There may be some very minor differences due to database sources. I use Yahoo Finance data.

http://bit.ly/hQdjAs
Billy

Hi Billy,

Thanks for the link to this excellent SPY spreadsheet.
Is there also a link to an IWM spreadsheet ?

Trev

[Billy]

Hi Billy,

Thanks for the link to this excellent SPY spreadsheet.
Is there also a link to an IWM spreadsheet ?

Trev

Trev,

I tried in vain to find in the archives if they were available too. Maybe Maxime is reading this and will repost his liinks.
Tom Ellis also provided online links to his own spreadsheets, but I can only find it for SPY also. Tom, please feel free to help if you read this post. I'm pretty sure someone posted an interactive link where one could simply change the ticker symbol at will.

What I will do, starting tomorrow, is posting here daily an excel file with all updated multi-timeframe levels for IWM and GDX (and for XLE once the XLE robot will be online). I will include the first and second S/R clusters It's easy to do for me and I'm here to help.
Billy

[Billy]

Billy; The MS1 of 81.46 and QS1 of 79.32 seem based on the MPP from May and the QPP of the 1st quarter.
Do you switch to June prices and prices from the 2nd quarter only on 7/1?

Best regards,
Robert

Robert,

Sure. The pivot and floor levels are always derived from the previous period close. We still need the full data from June trading close both for new monthly, quarterly and semester levels, so they will change on 7/1.
It is precisely such changes that allow progressive shifts of support/resistance clusters strengths over time leading to more or less hinderance to price progress. Near the end of any period, one can "cheat" and project the next period levels for some foresight. This exercise is most important at mid-year deadlines and I will comment on this in due time. Billy

[slgerritz]

The current price of GDX as I write is $54.76. This is pretty well below the new entry price of$54.86 and getting close to the original stop of $54.34. I am little uncertain here as to what I should do now. Should I wait until the original stop is triggered and sell all or buy more now and ignore the orginal stop and rely on the new stop? How will either effect my odds?
Steve

[Pascal]

The current price of GDX as I write is $54.76. This is pretty well below the new entry price of$54.86 and getting close to the original stop of $54.34. I am little uncertain here as to what I should do now. Should I wait until the original stop is triggered and sell all or buy more now and ignore the orginal stop and rely on the new stop? How will either effect my odds?
Steve

If you took the original GDX trade, your stop loss might execute today and the trade will be a "wash". It is not because you are close to the past entry that the trade dynamics is the same. It is not! The GDX robot is closer to a short than to a long signal. If a short is not triggered at the close, then the oversold situation could trigger a new long opportunity for tomorrow, with new pivots settings. So, you respect the stops and see tomorrow what the robot's stated direction will be.


Pascal