Tuesday Wrap Up

Boy, that was a nice close – at the very end I counted a 1:4 advancing/declining breadth ratio in the SPX. My puts were enjoying the ride down – actually surprised to not see more of a fight after 3:30pm.

Zero gets a B minus today – it did very well despite the very very flat signals we had to cope with today again. I just don’t like that long VTA despite the thin tape, but it’s almost impossible to account for all eventualities when programming those trading rules, especially in thinkscript. So, I told everyone to not touch it, especially since the Lite was not impressed with the upside. Someone actually grabbed it at the bottom and was happily telling me about it – I told him to get the fuck out and I think it wasn’t a moment too soon.

I think the Zero Lite nailed it again. Helped us negotiate the early morning whipsaw move and it kept me patient during the slow crawl to the upside. I loaded up fairly close to the top and after that the tape started to swing to the downside. Having learned from yesterday’s ‘relative signal strength lesson’ I interpreted the modest signal as buyer exhaustion and held on into the close. Your last chance to load up came around the 820 region and final confirmation came when we swung below the zero mark on both sides.

Difficult day but it turned into a good one. Show me an indicator that gave you better signals on a day like this 😉

Cheers,

Mole