In the name of Allah the most Gracious, most Merciful
Last night Understand, Survive and Thrive provided a comprehensive market analysis from every possible angle, and wrote: "1220 level possesses strong support for the market."
Lets see what happened:
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| Predicted |
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| Happened |
Subscribers were told to keep stops at 1207 in the last Trading Algorithm Update. Since the stop was not hit, they are still in the trade with SP500 futures up more than 16 points right now. If the market holds its gains today, it would suggest that we have started wave 3 of 3. This pattern means that we are off to the races to at least high 1200s in the near term.
Moving Forward
It seems like "8/4 Trend Reversal Test" was successful in identifying the trend change. Moreover, we have been working on a Trade Probability Calculator, to justify whether a trade should be undertaken or not. Probability Calculator's output will be shared with subscribers and blog readers in November -suffice to say, it has brought numerical clarity in our trading.
Current IPM turn window has resulted in a significant market bottom, marking the start of 3 of 3 (the strongest rally phase). Next IPM turn date has been calculated, and Subscribers will be informed about it next week. Subscribers will also receive updated detailed stop levels by Friday. Right now bring the stop up to 1221 (SP500).
If interested in this kind of Analysis, register now for Subscription Info.
Deadline: October 31, 2011
which means its still on uptrend mode?
ReplyDeleteThat was an awesome call!
ReplyDeleteIn your face Steve
ReplyDeleteI would say thank God. It was a tough few days. It seems like Market analysis does work.
ReplyDeleteI mean it has been working so far, saving us from shorting since October 4, 2011 lows. We would have lost our faces, if we had been short!!!!
Anyways, once again thanks God!!!
So is this a long or short term uptrend?? Any thoughts??
ReplyDeleteso your 8/4 test infers that a 3 wave upwards correction is in place for the intermediary time in what is still a longer term Bear market?
ReplyDeleteas opposed to this being the beginning of the third out of a five wave Bull uptrend?
Guys, 8/4 test suggested that we are in an uptrend. It depends on whether we are in a Bear or Bull market. To be honest, I have lost a lot of money by assuming several times that we are in a long-term bull or bear market. Now, I adjust with the market.
ReplyDeleteThat being said, market internals are strong, and we are in an uptrend. However, risk-management is the key. Therefore, right now stops should be at 1220 for long-term investing. We will increase the stop levels as market progresses (for people with 2-6 month investing). For people with 2-3 week investing, if the market closes strong today, we can bring the stops up to 1250 (SP500). Details will be provided in the Trading Algorithm update.
Note: You can always stay long till the next 8/4 test occurs to the downside!!!