World events can change the trend

So the Egyptian protests have hit the markets and we had a hard down day the day after a new up signal.  The signal is now sell.  I expect more weakness in the markets.  Sell the QLD and Buy QID.

From the Guild Investment :

Russia Watch: Sitting (Literally) on a Huge Repository of Raw Materials

 

An analysis of the Russian raw material scene indicates production lagging behind expectations and an effort underway to change the situation. Russia is among the world’s three largest reserve holders in iron ore, coal, platinum group metals, potash, magnesium, titanium, tungsten, gold, silver, sulfur, tin, and the rare earth elements germanium and vanadium.  The country also has huge supplies of oil, salt, nickel, iodine, molybdenum, cobalt, and cadmium.  That’s a huge amount of potential wealth awaiting efficient exploitation.

 

The Russian government plans to ramp up production of these resources and increase its wealth. It’s worth noting that much of that wealth is controlled by a few politically-connected oligarchs and government officials. 

 

I only now of ETF RSX for investing in Russia.  Need to research this.

 

 

 

Market resumes uptrend (1/26/2011)

We are back to the buy signal and sell QID and buy QLD at the open.  My aggressive system does get whipped around at times.  I would be all in at this point because the theme right now is QEII and Fed want investors to sell bonds and buy stocks, American stocks.  Go with the plan until it changes.

Ben

Mid day 1/26/2011

If the markets closes at these levels we will have a new buy signal.  This market is tough because of the shallow corrects.  This makes it hard to get in but this time we are on a sell signal so we next get a buying opportunity.  Follow the system....

Follow the system 1/21/2011 - Friday

At the start of trading you should have sold QLD and bought QID, between 10:00 and 10:15. 
QLD I had a gain of 11% when closed out. QID at this time is a small loss because of a strong day Monday.  If  the market continues up a new buy signal will get us back to long.  Let's wait and see.

WHY THE MARKET IS WRONG by Carl Swelin

In my business I am exposed to the writings of a lot of really smart people, and it is never hard to find a few who are trying to explain to us why the market is wrong. The market is wrong, of course, because it has blithely gone its merry way without any regard for the brilliant analysis, presented by the writers -- analysis that explains with exquisite detail and flawless logic why the market should be doing the exact opposite of what it is doing.

Fundamental analysts are most prone to this kind of error -- writing reams of research, and then, by god, sticking to their guns as the market in turn puts them and their investors through a meat grinder. Most are trapped in a system where they are required to justify their actions with a good fundamental story, which is why, for example, Calpers (the State of California retirement system) was down 25% in 2009.
However, there are plenty of technicians who fall into the same trap when they start using indicators and oscillators as a crystal ball. This approach usually doesn't work any better than the fundamental crystal ball. You are basically left with a bunch of ambiguous technicals as a basis for making your next "call."
Rather than explaining why the market is wrong, we should be asking, "What is the market doing?", and acting appropriately. I am, of course, talking about a trend-following discipline. This approach is never perfect, but it is always rational because we respond to what prices are actually doing, not what we think they ought to be doing.

1/20/2011 - End Of Day is a new signal and it is Sell

My system has given a sell signal.  The action now is to sell your ETF's as in QLD at market open.  If the futures point to a higher open wait until 10:00 - 10:30 am to see what direction the market is moving.  If it moves up see if we have a resume of the uptrend and hold on to your QLD.  If the market is still weak, sell your QLD.

Happy Trading.
Ben

Market in up trend

The markets keep raising at a slow pace.  My market internals are saying we are getting in the range where the market corrects.  How much I do not predict.  Will I go short when the next sell signal comes, Yes I will.  I follow my system.  I do this with a position of my account money and it is up to each investor as to how much to risk.  My system has what I call "go to cash" signal also and that is for the long term positions to be sold.  It is not an exciting system I have with all the waiting for days or weeks and some times months between trades.  Does it work?  Yes.  The next sell signal I will sell my long ETFs and buy QID.

Happy Waiting
Ben

A new year and let's get started with The Trend Advantage System

I have developed a system I would like to share with you.  It follows the stock market up and down trends and produces great returns in either direction.  This system is for the average person who works during the day.  It does require 5-10 minutes a day to see if it is time to make trades.  The system trades ETF's and uses long and inverse ETF's.  It is a mechanical system making it simple to use.  Where the system shines is it gets you in the rising markets early where the big gains happen.

I would like to hear from you about what it is that you want to know more about and if you have a similar system.