Thursday, June 26, 2008

A Post

Long time no see nor checked in....So I thought that I'd get back on track and make a nice little post for you or anyone (if anyone) out there:

I think everyone will agree that today was a bearish jump off the side of a cliff!!! I love days like this (if I'm positioned for it - which I wasn't because it's too hard for me to trade in this kind of environment as of recently).

When looking at the $SPX the momentum (Red line) on MFC study is at 0. So i got curious as to how many times the red line has actually hit 0 in the last 2 years...Well, it's only happened 2 other times besides today. Of those 2 days, the very next trading session resulted in one session at +15 points (7/30/07) and the second session resulted in -13 points (2/6/08)...So, to go a little further, I wondered how many times the Red line closed at 1 or below, and what did the SPX do the day after.

Here are the results:

SPX Rallies w/ momentum line @ or below 1.00
03/06/07: +19 Points (5 day rally)
03/14/07: +11 Points (2 day rally)
05/01/07: +4 points (5 day rally)
05/11/07: +14 points (1 day rally)
06/08/07: +17 points (2 day rally)
06/13/07: +23 Points (3 day rally)
07/11/07: +9 points (3 day rally)
07/30/07: +15 points **(Red line was @ zero day before)**
08/06/07: +34 points (3 day rally)
08/10/07: .55 cents (Flat; no rally)
08/14/07: -20 points (rallied close to 8 more days after that)
08/29/07: +31 points (1 day rally)
10/22/07: +10 points (2 day rally)
11/13/07: +40 points (1 day rally)
12/17/07: -20 points (rallied close to 6 days after that)
12/18/07: +9 points (same rally as above)
01/07/08: +2 points (1 day rally)
01/16/08: -4 points (fell 3 more days after that)
02/06/08: -13 points **(Red line was @ zero day before)**
03/11/08: +46 points (1 day rally)
03/27/08: -15 points
06/12/08: +4 points (3 day rally)
06/27/08: ?????????? **(Red line was @ zero day before)**
------------ --------- --------- --------- --------

The date represents the trading session after the Red line reaching 1 or below. The +/- of points is how many points on the $SPX that were either gained or lost in that 1 day. The 3rd column tells us how many days after the reading that the SPX rallied once the red line hit 1 or below...

In the past 2 years, the $SPX has rallied 17/22 sessions. Of those 17 trading days, it's averaged a positive gain of +17 points...

Just thought I'd share what I found.

-Matt J

Quote for the Year

"You can't find God in a bar"

-And I've been MIA for a while; but I'm looking to get back on track. I apologize for the delay and will be coming back in full force shortly.

Thanks for your patience and have a great day!

-Matt J

Sunday, June 8, 2008


Time to short this pair? Well, I'm taking a shot at it and we'll see how it goes. This is a weekly chart and I apologize if all of the lines bother you....but you'll be just fine.

Friday, June 6, 2008

USO Trade Result

With the opening gap, we were able to get out at even a better price...

Entry (5/30) @ 103.41
Exit (6/6) @ 108.23

Net Result: +$482.00

We're batting 1.000 after 1 trade.


Alright, the Market Forecast system has given us an exit signal; the momentum line hit 87. So now, based off of the rules, we're supposed to exit the position at the close of the '87' reading or at the opening the next day.

I have put in a market order to exit at the open.

Wednesday, June 4, 2008

By The Way

...We're long USO based off of the system described below & we have been since 5/29. Based off of the rules below, the trend is up, and the momentum line that day was at 2.29, so we went long. But "we've got to be able to handle the swings"....and we're in a swing lower. The trend is still up, and there's still room for the momentum/ line to reach 80.

We're currently down, $443.00 (paper money)...