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, http://www.chartsedge.com/wp/

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BetaP

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.