Wednesday, December 14, 2011

Trading Algo - 12/12/11

Market: Bull (SP500) / Bear (New Index)
Defining Level: 1216 (SP500)
Trend: Up (SP500) / Down (New Index)
Defining Level: 1203 (SP500)
8/4 Trend Change Confirmation (Down to Up): Yes (SP500) – Trend Reversal Confirmed in New Proxy
Current Trade: Short from 1243
Profit Objective 1: 1205                                                 Trailing Stop (closing):  1250
Profit Objective 2: 1168                                                 EW Stop: 1250
Next Trade / Model Based Approach: N/A
Stop:                                                                             Risk (%): 
Risk Associated with trade: 
Turn Window: November 29 (-2/+4 days)
Market completes rally and tops
1-   Market bottoms in turn window
2-   Market tops in turn window
3-   Market double bottoms and breaks out
4-   Market double tops and breaks down
IF the market continues its downtrend, we will soon see acceleration to downside. Another evidence of us being in a bear market is the fact, market failed to close above the 200 DMA on numerous occasions. Without going into details, it appears that the New Proxy index was once again accurate in predicting that we will stay in the bear market for a long period of time. All of this information was shared with subscribers.

This kind of market behavior brings to light the need for patience and persistence, when analyzing the markets. UST Trading Algo pretty much stayed on the sidelines during the choppy month of November (we were short from 1240, but got out just before the big decline because of over analysis!!!), which in itself is a huge achievement.   

A special Euro Update was mailed to Subscribers on Monday. Although this report was written before the EU summit, it predicted that Euro will decline sharply based on a 5 year long pattern. This week Euro came down from 1.337 to 1.299. If you want this special Euro analysis report, please send an e-mail to:

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