Glad to be right again!
Even broken watches are right twice a day! Today my faith in the RumWave was reaffirmed at around noon. That is the time I checked it and saw a "sell" signal. It wasn't a strong sell, but it was a sell nonetheless. Then in the final hours of trading the market gave up the ghost and bearish carnage was all around. To this point, the DJIA has given up almost all of the QE3 gains as I predicted it would on previous posts. Full disclosure, I had closed my short positions at a loss so I was not able to capitalize on this decline. I lost my faith, lesson learned (again). The scary thing is, this RumWave method has never been wrong as long as I listened to it and trusted it. Here are the scores:
The 4 hr score took a nosedive today, so a rebound is likely tomorrow. I'm not recommending to get into short positions here. I'll wait a little bit and see how it shakes out before recommending shorts. I'm still a little gunshy on the short side. The DJIA daily score is still red so I think there is more room to move lower, but it might not be tomorrow or even the next day.
For those that have wondered why I trade the Dow, here's a great example. It is often the index most resistant to moves to the downside. So, had we been long going into this selloff we would have seen all the other indexes falling off well before the DJIA (which I've been posting since last week) thus having a "warning signal" that the decline was coming and we could have gotten out with minimal loss to our gains. A lot of people scoff my desires to trade the Dow, but there is definitely a method to my madness. Here's the proof, the DJIA is in green.
Questions, comments? Email me: firstname.lastname@example.org
GOOD LUCK EVERYONE!