Forum Clusters 110810.xlsx
Cumulative $TICK confirmed a very strong reversal and buying pattern by programs yesterday which usually doesn’t stop after just one day.
Just a few observations while the robot is still waiting for normal statistical conditions to come back to life:
Monday morning’s neutralized long entry limit would have been executed at the same price than today’s hypothetical buy limit of 68.74 and would have resulted with an intraday stopped out loss of -4.63%.
Tuesday’s neutralized long entry limit would have been 65.23 and we would be in a long winning position with a + 6.65% return that would be covered at the open today due to a switch to a neutral short signal. Note that this gain could have been made in the last 50 minutes of trading alone!
If active, the robot would be looking to short today at a limit entry of 70.81.
The hypothetical limit buy entry (68.74) and limit short entry (70.81) are expected to remain unchanged as long as IWM closes below the yearly pivot (71.84) and above QS3 (68.17). If such conditions prevail, these would be the limit entry prices once the robot is reactivated.
The most ideal scenario would be a 20 DMF buy signal in the coming days with a close below YPP (71.84). The robot could then buy with confidence a pullback to 68.74. If a 20 DMF buy signal is triggered on a retest of the lows, the limit buy entry is expected to remain around 65.23. The only tricky exception would be a 20 DMF buy signal with a close between QS3 (68.17) and SS3 (67.70). The buy limit entry would then be 67.82 in that case only.
The volatility stop with settings 65,5 on the 30 minutes chart has contained all bounces in the decline. It is at 69.69 or just above yesterday’s high. A reversal of the stop could have bullish short term implications. I remind everyone that one needs to wait for the CLOSE of a 30-minute bar above the volatility stop for a confirmed signal, temporary violations are an alert, but not a confirmation.
Billy
Reply With Quote