08/04/2011 Trading Signals


Cobra's Market View Private Messaging System shows:


THE SHORT-TERM TREND IS DOWN, I HOLD PARTIAL SHORT POSITION OVERNIGHT

The bottom line, well, no bottom line. Let me dig more tonight, just NORMALLY, a lower SPX ahead is almost guaranteed but we should be very close to a sizeable rebound and such a sizeable rebound, if any, is sell.

A little bullish biased toward tomorrow (well, I know you’d find hard to believe “bullish”) for 2 reasons:

  • VIX rose 18%, buy SPX at today’s close and sell at tomorrow close, since the last 2,000 trading days, you’ll have 77% chances.

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  • 42 out of 65 times (65%) a green day after a Major Distribution Day (NYSE Down Volume : NYSE Up Volume >= 9).

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And sorry for not mentioning the Cobra Impulse System short setup yesterday as I was so confident that it couldn’t be possibly triggered today. But, well, I was deadly wrong (and so was the last night’s report, a tradable bottom, blah blah blah). At the current stage, however, missing a short position may not be very bad cause the market is way too stretched on the downside so really hard to say what the next will be. The system uses mid price as the entry price, so if tomorrow the market rebounds above today’s mid price, you might have the 2nd chance to consider the setup.

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MECHANICAL TRADING SIGNALS
SPY SYSTEM ENTRY STOP LOSS Current 2*ATR(10) value: SSO=8%; SDS=7%; UPRO=12%;SPXU=10%
Non-Stop 08/02 S N/A Short is for aggressive traders only.
Cobra Impulse *08/04 S 2*ATR(10) *Short position initiated on 08/04.
DEMO ACCOUNT FOR SHORT-TERM MODEL (Attention: This is not part of Cobra Impulse System)
TICKER Entry Date Entry Share Stop Loss Exit Date Exit Profit Comment
SDS 08/04/2011 $23.13 100 $21.51  
SDS 08/04/2011 $23.13 100 $21.51 08/04/2011 $24.00 87.00  
LAST   2248.50  
SUM   2335.50  
  • $300 max loss allowed per trade. For fun only.
  • LAST = Year to the last month balance. SUM = Year to date realized gains/losses.
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