Let It Ride
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 firstname.lastname@example.org.
Have a great week!