Wednesday, June 2, 2010

ChartsEdge comments on trading equities with their bp chart maps

Looking at where the stock market goes next? Here are comments that Mike Korell posted this morning (sorry I didn't pick them up previously to post this morning!) at his webpage,


Posted: June 2nd, 2010 | Author: Mike Korell | Filed under: One-Day Market Map | No Comments »

CLICK HERE for BetaP Chart

How do I trade it?

I always trade non-leveraged mutual funds at end-of-day. (No need to watch the market… which suits me fine and no decisions to make, right or wrong)

I was flat on Tuesday because of the uncertainty associated to the holiday.

The BetaP pulled a trick I have mentioned a couple of times. On a day it was indicating a higher close, Tuesday, it moved sharply lower at the end off the day. In every case I can think of since starting the weekly BetaP charts, that is followed by a sharp move higher the following day. I went long at the end of day.

If the 1095 target for today is anywhere close to what the market actually does today, I will go short at the close today into the close on Friday unless the market moves lower than the target of 1080, in which case I may exit on Thursday close.

If the close on Friday is at or under the 1080 target, I will go long.

I use the cycle charts as a confirmation of the expected trend. they agree with the trades I have outlined above.

Using the techniques above, the trades using the BetaP are five wins and one loss for a net gain of 9% on unleveraged mutual funds which have no trading fees. An average of 2 trades per week. Today is starting out right with futures substantially higher as I write this. I am presently long the NDX-100 since it has been biased more bullish than it's index counterparts in recent sessions.

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