UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
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 261196  
Subject: Re: Sell in May/June sysetm buy signal Date: 10/14/2012 5:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5

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.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.