What

First and foremost, this is an unproven method of choosing when to enter and exit a position. Since back-testing is used to produce the models future results may not reflect or produce expected returns.

2013-03-20

Technical Analysis Whipsaw

One problem when using TA to tell you when to buy or sell is whipsaw - when an indicator says buy and then within the next day or two it says sell and vice versa.  Well that's what happened with my model.  Two of the buy indicators on Monday became sells today - TECL and RETL.  So over in my paper account (see the WHAT IF page) TECL and RETL will be sold.  And to follow up with yesterday's activity FAS and ERX were purchased today.

So the score stands 6 bears and 3 bulls.

---------- T H E   B U L L S --------------
  • Small Caps based on TNA
  • Finance, based on FAS   
  • Energy, based on ERX.


----------- T H E   B E A R S-------------- 

  • Biotechnology, represented by BIB.
  • Mid Caps based on MIDU.
  • Real Estate, based on DRN.
  • SP 500, based on SPXL.
  • Retail, based on RETL.
  • Technology, based on TECL.

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