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Yearly Archives: 2011
Choose Your Tells Wisely {Video}
HERE’S THE REAL MOTIVATION BEHIND THE RALLY
Bowd Crowder’s pep talk to bulls last week at a secret meeting in Harlan County, Kentucky.
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[youtube:http://www.youtube.com/watch?v=Iud0I1kgT-A 550 412] Comments »Rebels Without a Printing Press
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Despite a multitude of sensible reasons to see a pullback today, the market oftentimes does not act in a rational way. In fact, the market seems to defy logic to the point where it stupefies the majority of traders who think they have it figured out. Despite the end of the second round of quantitative easing, overbought conditions as measured by quite a few metrics, the last day of window dressing for end of month and end of quarter, steep moves up on many charts, not to mention the S&P 500 above its upper Bollinger Band, the market continues to rebel against the prudent types and scream higher this morning.
One of the main reasons why the broad market continues to impress is because capital is rotating to some of the more depressed areas of the market, such as the semiconductors. With or without Chairman Bernanke’s quantitative easing, the bulls are rebels without a printing press this morning.
As the session progresses, I believe the correct strategy is to lock in gains on some of the more extended names, while looking for other stocks setting up behind the leaders in which to rotate money.
Comments »Pushing the Edge
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This past Friday, June 23, 2011, The Fly made the above timestamped blog post for subscribers inside The PPT. As you can see, as UCO (Ultra Long ETF for crude oil) rapidly approached historically technically oversold conditions, according to the proprietary metrics used by The PPT algorithm, the idea was to seek to profit from this potential edge by analyzing how the ETF had fared in the subsequent trading session after registering a technically oversold score.
To be sure, if you took a look at a weekly chart of the USO (not leveraged crude oIl ETF like UCO) you would see that a simple support trendline dating back to 2010 was likely telling us that crude would stop going down for now. But wouldn’t you want to know more? I know I would. I would want to know in prior instances where UCO had become oversold to this extent, how it reacted and what my average return would be going out anywhere from one to ten trading sessions. This is exactly what The PPT algorithm does for virtually EVERY SINGLE TICKER in the market.
In this case, UCO offered phenomenal average returns going out seven to ten trading sessions after a technical oversold signal, as you can see above. Last Friday, when The Fly flagged subscribers to this fact who had not already seen it themselves, UCO hit an intraday low of $37.77. Just a few sessions later today, it hit an intraday high of $42.97.
This type of quantitative analysis goes above and beyond what even the most rigorous technical and fundamental analysis can do. So, why you aren’t you a member to reap these benefits for a little as $1 per day? Click Here for More Details About Joining The PPT.
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