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Author: rrjjgg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 253130  
Subject: Re: Sell in May/June sysetm buy signal Date: 10/14/2012 5:48 PM
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I suggest you review the NASDAQ new highs -new lows signal.
Your graph uses regular simple MA. The signal uses short term EXPONENTIAL MA crossovers. In the basic signal that Zee introduced, he used a 9 day average >0 and Jim then suggested a 13 day average >0. Jim then gave the 'rising'
signal which only is used when his first test above is <0. An easy way to chart this signal is to use certain MACDs since they are based on exp ma. The basic tests (at stockcharts.com)are MACD(9,0,0) and
MACD(13,0,0). Rising variants are MACD(9,29,0) ( a fast one I like--I picked 29 sonce it's about 3 times the 9 day EMA which makes it similar to Jim's which, I think, is MACD(13,42,0). To read the signal just look at the MACD graph. If it's positive, stay in stocks. If negative, duck, the bear is here.

Both 'rising' versions are currently negative.


If you look at the last three years, you'll see the primary test always went negative or to just above 0 after it peaked, then dropped to Friday's level. This suggests to me that the seasonal signal based on this signal
could remain bearish for a few more weeks.

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