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« Payroll Employment Forecast | Main | Intermediate Outlook Moves Negative »

August 02, 2007

Comments

Andy

Your model's buy decision coincided with a buy signal on slow stochastics. A lot of other people bought the 'oversold' condition based on money flow index and accumulation/distribution signals. And on the weekly chart, IGV is still above its long-term support, dating back to Apr 2003. (I confess I need to go back to yesterday's post to read the description of the model before I open my yap any more than this.)

oldprof

Brig -

Thanks for your observation, which is, no doubt, shared by others.

It does illustrate what I am trying to show about a system. If you believe in the method, you follow it. There are losing streaks (although this was not a losing trade) and there are moves that seem foolish.

If you have tested your method properly, you have the confidence to trade it. Let us hope that the next few examples provide a better illustration.

It is a difficult market with big swings. Most models are geared for more typical conditions. I posted this change because it was more important to be honest with readers than to look smart!

Thanks again for raising this point.

Jeff

Brig

2 day RSI? Yeah yeah I'm sure its much more complex than that.


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