Have Faith in The PPT
The PPT does not grade stocks, based upon simple moves in price. The program was developed to rank stocks, using pertinent data [commodities (soft and hard), currencies, treasuries, volume, beta, etc.] and how they correlate to stock prices. While it’s true, at the moment, 95% of all stocks in The PPT are ranked sell-st sell. It’s also true, this level of bearishness, typically, is unsustainable and often leads to an oversold bounce.
Just know, today’s drop (-17.05%) in “Hybrid score” (which combines both fundamental and technical data) represents the 2nd largest drop in PPT history. In all previous incidents of 15%+ drops in Hybrid score, the market rallied the very next trading session. Like I said earlier on The PPT, trends are made to be broken. However, for the moment, I am willing to give the market the benefit of the doubt, since it has dealt with adversity, exceptionally well, as of late.
Nonetheless, I took today’s sell off as a warning shot and opportunity, to reshuffle my deck, selling off losers, while adding to core names and new positions. At the end of the day, “The Fly” won, even though he lost, if you know what I mean.
Have a deliriously extravagant 4th of July.
fig
…and happy fourth to all.
system irregularites….. hmm
The S&P is a mere 5% below its highs (950) reached a month ago. To think we are “oversold” is preposterous. We have a good 5-10% more to go minimum.
OEW Summation:
“Yesterday’s rally to SPX 932 looked similar to the short term double top in mid-May at 930. This supports the technical ‘head and shoulders’ pattern: 930-956-932. Naturally from an OEW perspective we are counting that topping formation differently: Minor wave 1 from SPX 956 to SPX 889, then Minor wave 2 to SPX 932. Today’s selloff adds support to that count and the potential start of Minor wave 3. Additional downtrend evidence has been observed over the past couple of weeks. The DAX/FTSE are in confirmed downtrends. The three banking sectors we follow (KBE/KRE/XLF) are in downtrends. Four of the nine SPX sectors (XLB/XLE/XLF/XLI) are in downtrends. Plus, housing (HGX) and two of the Tech leaders (FSLR/RIMM) are in downtrends. And now the DOW is in a confirmed downtrend.”
Eric
When i say “oversold” I mean that from a PPT point of view, purely. It has nothing to do with the actual indices. I am merely using a reliable indicator.
I done blocked that gravatar shit. Too mfing slow. Their servers must be powered by homo hamsters.
But the Fly’s upgraded servers are now seemingly powered by hemi-hamsters, which must be a good thing. Not fast, mind you. But no longer awful.
deliriously preposterous? This is not the fly. This is an impostor.
extravagant - s’cuse me
You are most certainly NOT excused.
Fly…what’s your current cash position?
refuse to lose all the way to poverty or at least cheap scotch
Fireworks, swine, and beer. God bless the Red, White, Blue, and Gold(man).
Fly,
This link is broken
http://ppt.ibankcoin.com/ppt_faqs.php
BREAKING NEWS: GOLDMAN SACHS ENGINEERS SYSTEM IRREGULARITIES IN PLOT TO TAKE OVER THE WORLD….
That is all…
Sheee-it
PPT 2nd largest ‘Hybrid’ drop of -16.whatevah% , is nothing compared to my personal ‘technical’ loss (drop) of
FAZ -38.whatevah %
FTK -22.whatevah %
Only gains - funny enough, are in the Airlines (a PPT ‘lowest ranked’) via AMR. Prodshares UYG
Oh, and DVAX for a quickie. Thanks Henry Fool.
Certainly not enough to make up for any losses stated above. But hey, it’s not a loss if you haven’t sold-right?
‘Trends are made to be broken’ Hope mine is.
Today’s comments by the fly are unflylike. Is someone else posting for the fly while he’s off to the beach?
Oy vey, here we go again.
________
Eisenstein, haven’t you a Potemkin Village to film?
_________
Are you a mouse in Fly’s pocket?
have faith in my sack! this market is tanka lanka, the Terminator is selling assets to China and the rest of the US is unemployed and broke..me thinks only Chart Addict is swift enough to reverse and bank it, that guy’s the true ninja warrior
The Fly is from the South, had a religious upbringing and may be related to Wyatt Earp. Or maybe just had a WE fetish growing up.
All i can say is that if you are a long time IBD user or if you’re a CANSLIM investor, you will love the PPT. I can probably make a PPT 100 and it would outperform the IBD 100. Former IBD #1s that hit PPT’s #1s first include GMCR and STAR. If that holds true, then eventually SXCI might hit the top 3 on the IBD 100.
I’m currently tracking significant moves in the overall PPT-hybrid scores to see if I can use it with my other contrarian indicators.
Gio,
Very interesting. Let us know.
Enjoyed the reports of your sojourn to California.
We like to get off the Big Island three or four times a year and do an older persons version of what your did..
I’m long 100 % with a fund I have to hold all day Monday. So, I’ll be drinking and eating alot over the holliday and hoping I didn’t make the wrong short term call!
I guess I’m betting, along with Fly, that the market will bounce before it turns over.
Haha, great! loved it up there. sometimes we get all crazy living on rocks. It’s good to get out of here sometimes, but can’t beat the laid back pace of the islands. Let me know if you need some recs to eat and stuff. I’ve tried pretty much every restaurant.
Termites don’t care if it’s July 4th.
Sounds like a challenge. Why don’t you start posting comparative returns. And no loyes.
For the record, I’ll take MEMS against SXCI (4.17 vs 25.66, down 1.9% vs 3.3% on the day)
The 7th largest economy , the state of Calif, is not issuing IOU’s.
Unemployment still straight lines down.
Housing inventory straight lines up.
There are too many fundamentals working against a rally.
ung, pcx, pcu, etrade, corning ,gme,C, FLY-is this a good combination going in to Q3 and Q4
I can think of many reason why each of these will go up over the next 3 to 6 months.
5 “FACTS”
1. $BKX Banking Index ready to break out from long term wedge
2. Many daily wedges BTFO DOWN today e.g. HIG pru hig met sgr
3. July- last half is a poor trade (cf. Traders almanac)
44.My right pitching shoulder is stiff. This precedes most mkt turns
5. Mass layoffs are acelerating (ZHedge 6-23-09)
Get out or be short. I will return on 7-31 for the kudos or crow eating. We are going the fuck down. PPT be damned; full speed ahead.
happy july 4th to all…specially hawaii…aloha.
I’ll be celebrating the 4th in Waikiki on the beach with Mai Tai in hand….just waiting for incoming.
What better fire works!!!!
Hey Fly,
Perhaps you can make a more in depth article about the PPT since it is hard for serious traders to use a tool without knowing the basic fundamentals behind it.