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New S&P 500 Setup: Bullish Signal for Feb. 11
Feb 3, 2008 - My UltraShort ProShares S&P 500 position has been a great hedge for my portfolio, based on my previous setup's bearish signal... Hi folks. I've just taken another look at possible trading setups based
on the Commitments of Traders data on futures and options positioning
on the S&P 500. I managed to find a new trading setup that I really
like. The results are posted on the Latest Signals
page. I think you'll agree they're pretty good. Especially interesting
is that, while they've been on a bearish signal during the recent
market rout, they flipped to bullish with the Jan. 15 COTs report. The
setup uses a three-week trade delay, so that means I'll execute the buy
for the open next Monday, Feb. 11. My UltraShort ProShares S&P 500
position has been a great hedge for my portfolio, based on my previous
setup's bearish signal. Also worth nothing is that my Russell 2000
setup flipped to bullish a few weeks ago, and with the seven-week trade
delay for that setup, the buy is to be executed for Monday, Feb. 18. So
all this suggests the bottom really is in around here - although we
still need to wait a little longer for the ideal buy point, from the
perspective of historic relationships between trading positions and
price action.
Discuss this article in the forum.
Disclaimer: Please note that charts and commentary provided by the moderator are for educational purposes only. Any trades placed upon reliance on the moderator’s charts or information is taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward trading stocks, futures and options, there is also substantial risk of loss and you must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell stock, futures, options or commodity interests. Most trading systems are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading stocks, futures, and options and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. Never risk more than 2-3% of your account on any one trade. Always define your risk before entering a trade and place a stop to limit your risk. There are no guarantees or certainties in trading. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system’s draw downs. If you are looking for a guarantee, trading is probably not for you. Most people lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. Ironically, worrying about the monetary aspect of trading can contribute to and cause a trader to make trading errors. Therefore, it is important to only trade with true risk capital.
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