First let me apologize for my dearth of posts concerning anything other than the Power Dip. I am in the process of trying to find new employment and have spent most evenings readying important things like resumes and letters of reference. I should have most of my employment file up-to-date and will be able to concentrate on completing interesting studies for the readers of this blog to evaluate.
The Power Dip does not have any sells for Friday’s open, but it will add one position, making the model portfolio full with eight positions.
The model portfolio will add GSI Commerce, Inc. [[GSIC]] on the open. Beware the company just completed a secondary, but the system certainly doesn’t know that, and therefore the trade will be made.
Regarding CRR, NLY, and SBS, which were purchased on Thursday, in my own account I received significant positive slippage on these (+.24 on CRR alone). However, to keep this spreadsheet as accurate and realistic as possible, I did not put my actual fill price but instead used the nationally listed open.
Good luck finding a new job Wood, on a side note those donuts or scones behind your name on the main page look pretty fucking good.
Indeud. Good Luck Wood. I’ve been looking for a gig since November. I’ve found there are very slim pickings. Some have work and no $, others have $ but no work.
Thanks guys. My current position is secure, but I’m sensing that it might be time to move on.
Looking in the same field or something else?
We’re in the same boat, however nearing 30 aka 2/3’s to being “Vanilla Gay” if I leave this job I”m going on a world tour of sorts as it’s “Now or Never” really.
Wood. Can you tell me if the condition of the general major market (i.e. the SP500) has any influence on new buys for the Power Dip? In other words, does it kick out buy signals on individual stocks/ETF regardless of where the overbought/oversold indicator is for the SP500?
Junk, you’ve asked me 2 different questions, but I think I can explain without giving away the recipe for the secret sauce.
Condition of major market: Yes, it has an influence on new buys for the Power Dip. If the major market is selling off, then there will be more dips, which means there will be more Power Dips to buy. However, if the major market has been selling off for weeks and weeks and weeks, eventually there will be no more Power Dips, because the PD seeks to buy dips in the strongest of stocks. Once most stocks are weak, the Power Dip will no longer be buying the dips.
So the system will kick out buy signals on individual stocks regardless of whether the SP500 is overbought/oversold, as it trades any stock that meets the liquidity/price requirement, not just those on the SP500. And even when the SPY is oversold, it doesn’t mean that every stock in the S&P500 is oversold.
Hope this helps.
Thanks. I’ve been wondering about that factor with my own system. Psychologically, it’s hard for me to take a trade that meets my criteria when the major market is overbought (as defined by the RSI2) for fear that the trade will follow the major market into a correction and not revert from the oversold state. This is one of the reasons why I have trouble keeping my entire capital base at work. I plan to assess the return of simulated trades in relation to the SP500’s current RSI to see if there is an edge. Thanks for the bone.