Lady Market and Intangibles – October 27, 2011

[manucastle]

Hi Billy & Pacal,

Based on current circumstances, can you guys confirm (or correct) my understanding that the 20D MF will only signal a long entry after we have 1st moved to oversold conditions and then retraced back up?

So, if the market moves immediately higher from here without pause or their is only minor pullbacks that does not bring MF into the oversold range, can the IWM robot get long? I guess this would be sort of over-ruling the 20D MF?

btw - I spoke with Fahmy last night, he seems convinced the US (or, PPT) is intervening on the long side. Also, I double checked the Operation Twist start date - see http://seekingalpha.com/article/2983...e-stock-market This references says the first purchases were made Oct 3 and then again on Oct 4 ... interesting coincidence with the Oct 4, last 45 min end of day 7% run in IWM?? Someone how I missed this date/information and should have been more on guard for the snap back.. Maybe we are back into a psuedo-POMO trading regime??

Thoughts?

Shawn

Lots of emotional headless chickens running around just now. I have been in this type of market many times and it is very easy to get sucked in. I will wait for a better entry.

We probably all feel we are missing something but fear and greed are the enemies at the gate !

Just my 2c

Trev

[manucastle]

Lots of emotional headless chickens running around just now. I have been in this type of market many times and it is very easy to get sucked in. I will wait for a better entry.

We probably all feel we are missing something but fear and greed are the enemies at the gate !

Just my 2c

Trev

It is a pity we don't have the Motley Fool 'Poll' function here e.g.

Which would be the best investment decision now :-

A. Going long at the open today.
B. Going short at the open today.
C. Patiently waiting for a new strong Robot signal either long or short which has been thoroughly tested over the medium term .

For me it is an easy decision. How about you ?

Trev

[adam ali]

Trev,

I'm particularly interested in how the RT 20DMF indicator will handle this type of environment. I've been following Pascal's advice that once the 20DMF is above the '0' line, markets remain a buy, but am looking to other tools (as opposed to the Robots) for guides on potential buy setups and price levels.