Tuesday, February 24, 2009

02.24.09 - Pivot Reversal

Daily directional indicators remain net positive, albeit downward sloping after price failed to pierce the daily floor pivot at SPY $76.07. SPY RSI-2 remains well under one for the third day in a row, as about as extreme as I have ever seen.

Reading: MarketSci, Trading in Abnormal Environments

Year-to-Date Change:

SPY -17%
DIA -18%
QQQQ -5%
IWM -19%

4 comments:

Woodshedder said...

Nice work hanging in there Jeff. I have not been shaken out of a trades like I was the past 2 days (long) in recent memory.

Jeff Pietsch CFA Esq said...

Hey Wood,

There was lots of fuel for a turn on even small pos. news. Helps me to leg-in and out. I wouldn't beat yourself up too much, this remains a broken market by a number of measures. Better shaken out than fleeced.

Regards, Jeff

indextrading said...

Very nice blog. Can you explain what are the magenta and red dots on your TICKUS chart and those bands are bollinger?

Jeff Pietsch CFA Esq said...

Thanks GT,

Sorry, no magic there -- pivot highs and pivot lows -plus- lows and highs connected to help discern action of the otherwise very noisy and unruly tick. The connect the dots on the same sub pane is accumulative tick.

Changes in extreme tick can be faded, alignment in accumulative tick and AD can be trend traded.
Browse around "Studies, Systems & Methods" for more on this.

Best, JP