The intermediate term S&P Model is short as of the close on November 8th. This model will cover the short at the open.
The NASDAQ model is in cash. This model will get long the NDX at the close tomorrow November 15th if the VXN stays below 22.67 or if the VXN closes below 22.55 or if the VXN closes below the VXN open.
The VIX Model is Long as of the close on November 4th. This model will sell the long at the open and potentially get short at the close tomorrow November 15th if the VIX stays below 21.23 or if the VIX closes below 20.61 or if the VIX closes below the VIX open.
Ripe Trades
At left you will find a list of long and short candidates. Historically these long and short setups have performed quite nicely when using the entry levels specified next to the ticker and the exit rules below. Here is the real time out of sampleperformance reviewof the Ripe Trade results for the year 2008. These are the stocks that qualify for Today with the entry price limits specified , good for the day only.
Long Exit rules – Exit at the close on the day when a 2 day RSI close is greater than 50 or exit on the first profitable open with a 1 day delay. The 1st profitable open with 1 day delay dictates that I hold the position for at least 2 trading days which includes the entry day then exit on the 1st open that is greater than my entry price.
Short Exit rules - Exit at the close on the day when a 2 day RSI close is less than 70 or exit on the 1st profitable close with a 1 day delay. The 1st profitable close with 1 day delay dictates that I hold the position for at least 2 trading days which includes the entry day then exit on the 1st close that is less than my entry price.
These setups don’t have a stop loss, our research has showed through back testing that this strategy works best without a stop loss. A few ways to limit the risk without a stop loss are 1) Position Size - lowering your position size lessens risk. 2) Watch out for single sector exposure, don’t let one single sector become too big a percentage of your account. 3) Consider using options for blowout protection. For longs consider buying way out of the money puts and for shorts consider buying way out of the money calls. This will create a catastrophe stop that protects you even if the stock has an extreme overnight gap.These setups are for education and entertainment purposes only this is not a recommendation or solicitation. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Stocks ready to Breakout
Here is a list of stocks that meet the breakout trade setup criteria of a 10 day Bollinger band width in the bottom decile for a 200 day look back. (ADSK BIDU CA CERN CHKP CHRW CTSH CTXS GENZ INTU MAT NWSA SPLS SRCL TEVA VMED WYNN XRAY ) The next step is to look for a big gap tomorrow (greater than 1 range above or below the close) then enter on a bull or
bear range pivot in the same direction as the gap.The real time 2008 performance results are
hereOne thought on the breakout candidates is to incorporate trend and only take buy signals of stocks in an uptrend and sell signals for stocks in a downtrend.