Let It Ride

By: Lynn T | Sun, Aug 9, 2009
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8/9/2009 10:47:34 AM

Like at the tables, we're all in.

Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial Leverage Utilization System, click here.

I'm not a big proponent of going to the casino, but I am a stock market supporter. What is the difference? It is a lot easier to take the emotion out of trading and investing than it is to take the emotion out of gambling. What do I mean by that?

While at the casino, you are holding your chips and betting. While trading or investing, you are only looking at a computer screen - or, if you're auto-trading, you may not be looking at anything as the auto-trade company takes care of things for you. Not physically holding your money and watching it go into the hands of the dealer makes it easier to take the emotion out of trading/investing than at the casino.

Now, where does that leave us? Have any indicators changed from their bullish stance? Not at this point. We're going to let it ride, staying fully weighted to the bullish side of things.

No new position (see weighting below).

Current Weighting Suggestion:

3/3 in Bullish Leverage

Long Term Investor Buy Signal Alert

Over the past several years, this indicator has predicted several 100-point or more moves in the S&P. There are only 2 to 3 of these signals every year, so they're worth paying attention to. This is an ideal signal for investors to put cash to work following a down move in the market.

A Long Term Investor Buy Signal Alert was issued March 18, 2009. Over the past 4 months, the SPX has moved up around 235 points.

Past Long Term Investor Buy Signals

October 29, 2008 - resulted in an advance of 76 points over 4 days.

July 23, 2008 - resulted in an advance of 34 points over 3 weeks.

Long Term Investor Crash Warning Indicator

This indicator is a variation of the widely published Hindenburg Omen. We'll let you know when we're seeing indications of a potential crash to come. This would be a good time for long term investors to take some money off the table.

This indicator is not coming into play at this point in time.

You can email me with any questions at plus@stockbarometer.com.

Have a great week!

To learn more about my Partial Leverage Utilization System, click here. This service is available for $21.95/month or $209/year. To try my service, click here.

 


 

Lynn T

Author: Lynn T

Lynn T
+ 1-2-3 PLUS Alert +

Various levels of Leverage can be achieved with the following funds or trading vehicles:

Direxion
S&P 500 Bull 2.5x Fund (DXSLX)
S&P 500 Bear 2.5x Find (DXSSX)

Rydex (Rydex Accounts have morning trade options for AM pricing)
S&P 500 2x Strategy (RYTNX) - Bull (Titan Fund)
Inverse S&P 500 2x Strategy (RYTPX) - Bear (Tempest Fund)

Profunds
Ultra Bull Fund 2x (ULPIX)
Ultra Bear (inverse) Fund 2x (URPIX)

ETFs (ETFs can be traded intra day like stocks)
ProShares Ultra 2x S&P500 (AMEX:SSO)
ProShares UltraShort 2x S&P500 (AMEX:SDS)

Note: while the system will work with the DOW and NDX related funds and ETFs, it is tuned to work best with the S&P.

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Important Disclosure
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Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

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