IPM trade matrix - trade 11 (part 3)

Yesterday's market decline was very interesting. Elliott Wave pattern suggests that the market traced out a 1 and 2 waves in DJIA and SP500, while small caps have traced out a series of 1s and 2s. Primary reason for this assessment stems from the fact that after yesterdays bottom, market rallied in an impulsive manner I.e. 5 waves.

Furthermore, ipm turn windows bottom date and recent buy signals are two other reasons why one should expect a rally.

At the same time, recent sideways action might have confused a lot of investors, who were looking for a sharp rally. But after looking at some sentiment measures' extreme optimistic reading during last weekends updates, it seems like market is trying to workoff this excess by going sideways and tiring investors. 

IPM Trade Matrix 2014 Trades

TRADE - 1: (Long) = +2.6%

TRADE - 2: (Short) = +9.3%

TRADE - 3: (Long) - Non IPM Trade Matrix trade = -0.2%
TRADE - 4: (Short - 1/31/14 to 2/5/14) = +7.25% 
TRADE - 5: (Long - 2/11/14 to 2/22/14) = +9.8%

TRADE - 6: (Long - 2/22/14 to 3/07/14) = +11.7%

TRADE - 7: (Long - 3/18/14 to 4/11/14) = -18.1%

TRADE - 8: (Short - 4/23/14 to 4/28/14) = +11%

TRADE - 9: (Short - 4/30/14 to 5/12/14) = +0.3%

TRADE - 10: (Long - 5/16/14 to 5/31/14) = +7.4%

TRADE - 11: 

Bought TNA at 79.5 on 6/19, 6/23 & 6/25 based on IPM Trade Matrix long trigger. Cost Basis = 79.55 

TRADE CONDITIONS
When: IPM Model Bottom window - Date info e-mailed to subscribers

Next IPM Turn Window: Top/Bottom
Trigger: SP500 = 1947, GDOW = 2599
Supporting Indicators: Uptrend   

PROFIT TARGETS
Profit Target 1: 2000
Profit Target 2: 2050

RISK 
Stop: SP500 = 1929, DJIA = 16716, GDOW = 2578, Comp = 4292
Trailing Stops: Will be defined next week. SP500 = -, GDOW = -
Typical IPM Trade Matrix Risk: -
Actual IPM Trade Matrix Risk: -% (Entry = 1947 , Exit = - , Risk = -% )
Risk Reason: Too much optimism

Applicable Rule: 

1. Sell (1/2) at profit objective 1 to minimize draw-down
2. No Trade in opposite direction
3. Do not go long or short without trigger to prevent losses by market moving against you.  
4. Observe stop-losses to minimize draw-downs
5. If stops are hit ==> Wait on the sidelines for new opportunity near IPM Turn window

Note: IPM Trade Matrix Trades will be posted in the first half of 2014. This is an experiment to understand and enhance the capabilities of this Matrix.

For Blog updates on Google+ add: Understand Survive Thrive 

For Blog updates on Twitter, add: @survive_thrive

For E-mail updates: