Quote Originally Posted by shawn_molodow View Post
Hi Mike,

For practice and usefulness in my trading, I manually run the MEM system on SPY, IWM, $NYA & $COMPQ each morning and *try* to keep count.

I am not perfect, but I try my best and have folks like you and others help me stay on track - most certainly with $COMPQ. So, to the best of my ability what follows is my count.

As of Jul 20, before the open:

1. SPY: EC +4 (90%) and 3 DD (Jul 5, 6 & 10) - FTD was Jun 29. Spy is and has been out of synch with the others, e.g. FTD was on Jun 29 whilest others had their FTD on Jun 15.

2. IWM: EC +3 (75%) and 5 DD (Jun 21, 25 & Jul 10, 12 & 19)

3. NYSE: EC +1 (30%) and 5 DD (Jun 21, Jul 5, 9, 10 & 12)

4. $COMPQ: Buy Switch OFF

I totally agree and see SPY as the leading index based on the exposure counts and DD's above. I also see the real-time 20D MF plodding higher each day and mostly keeping a low ATR .. (the last couple/few days)... I also see divergences in the indexes/ETFs. I am somewhat confused by this, so I am inclined to see the market as being on the *edge* of something.. hopefully, a big move higher, but TBD and let's see.

Any suggestions or thoughts welcome: e.g. I sometimes wonder whether IWM is more volatile than $COMPQ and $NYSE, such that MEM levels (on FTD, etc.) may be too low for that index (but, I looked at ATR averages and IWM is not that different than the QQQ's/$COMPQ over the last couple of years).

Take care,

Shawn
Thanks Shawn,

I had a conversation last night with Justin Nielsen (he is the programmer of the IBD model) and he mentioned an exposure count of +4 on the S&P500. The computer model in excel is so difficult to get right that I haven't ported it yet to the other indices. We were about to port it this week but Justin mentioned some changes that will require some cogitation. They will unveil the S13 distribution cluster rule at the next Market School meeting. The S13 is four out of eight trading days of distribution events that includes real distribution and stalling. It will also turn the power trend off. The power trend will undergo a change. Currently the power trend comes on if the 21-day ema is above the 50-day moving average for 40 trading days. New rule changes this to 5 days with the added requirement that the index lows have to remain above the 21-day ema for 10 straight days and the 50-day moving average must be uptrending. If the power trend is turned off by the S13 distribution cluster sell rule it can not be turned on again until reset by an S9 close below the 50-day signal and then meeting all of the other requirements.