Mousetrap 11/20/2011

[ericoleman]

Thank you for sharing, Timothy. Are you using the Effective Volume Money flow to track the respective ETF's (EWH EWP EWA)? Or do you use additional tools for money flow analysis? Also, when you refer to dollar related ETF's, is it just UUP, or are you including others?

I always like reading your posts. Thanks again.

[Timothy Clontz]

Eric,

Thanks for your kind words!

Pascal and Billy have developed a trend following tool with their effective volume, which is extremely profitable for short term traders.

I'm experimenting with a mean reversion system using non-effective volume; volume not associated with price movements. It's slower, and in a live testing stage. The idea is to try to stretch technical analysis out to a year timeframe, which is the minimum for a fundamental investor.

The jury is still out on whether it works synergistically with fundamentals.

As for the dollar, I'm looking at UUP for negative divergence, but also other currencies and gold for positive divergence. When those both occur, I consider that as confirmation that money seems to be betting for the dollar to go down.

I don't understand it, but I'm curious to see what unfolds.

Tim