The Market Dissector A/D indicator (just barely) issued a buy signal for tomorrow.
The decliners barely closed above the upper Bollinger Band. The signal to close the long position will issue when the decliners closes beneath the lower Bollinger Band.
This indicator has a high win rate.
Note that the Bollinger Bands allow the indicator to adjust to low and high volatility (we are currently in a lower volatility environment).
Stay tuned for more on this indicator…
For those of us who are using the PD, it would be good to see this more often.
Perhaps, its use could be helpful in guiding us with regard to the amount of risk we are willing to take.
Although I’m guessing some of this is built into the system already.
By the way Wood, I just want to reiterate how much I like the system both for getting us in the trade in the first place and keeping us in for a gain or the least possible amount of loss.
If not for this systems, I believe I would have sat out much of this rally in fear and trepidation.
Hawaii, at some point, I will likely incorporate some breadth indicators into the PDS site, for subscribers.
There is actually not any breadth components built into the PDS.
I’m glad you’ve been happy with the system. I hear you about keeping you long when you didn’t want to be. It has accomplished the same thing for me over this bull run.
Thanks for posting this Woodshedder. Definitely an upbeat note on an otherwise difficult day. I hope we can squeeze a little more juice out of this bull run – I keep expecting things to go south any day. But then, I’ve been expecting things to fall apart for the last two months now. Given the contrarian nature of the market, the fact that I (a retail investor) am still worried is actually probably a good thing for the market outlook.
I find having an objective process to follow alleviates some of the worry that comes after an extended market run.
The other thing I’ve been thinking on is how we tend to overweight the recent past and underweight the more distant past.
If we hadn’t had the armageddon trade of 2008, would we be so worried about a steep correction now? I don’t know. The market spends a lot of time trending or consolidating. Not a lot of time is spent correcting or crashing, yet it is the correction or crash that we tend to focus on and we lose the trend.