the proprietary smart money indicator continues to be in sell mode although the sentiment survey provided by the american association of individual investors is no longer blatantly bearish as it was for almost the entire month of january. on the bearish front, keep an eye on $nysi, as it is almost ready to tip its hand.
the 2faced system grew out of market frustration when my smart money indicator triggered a sell signal while i watched the market rally. distress can be the mother of invention after all. the system is meant to be traded as a whole, that is, both longs and shorts need to be bought and shorted simultaneously. i am on the other hand also building a better mouse trap to catch any further premature smart money sell signals with the aid of some new indicators that look very promising; more on this later.
the january, 2013, monthly 2faced longs were closed out on 2013/02/01 with a total profit of 8.29%. while spy returned 3.65% during the same period. the longs returned a 6.02% profit, the monthly 2faced shorts returned a 2.27% profit.
2faced monthly shorts for january 2013, remember these stocks are shorted and if profitable trades they should show decreases, therefore, are in red::
the weekly 2 faced longs closed out on january 08,2013 with a profit of 3.01% for the week , the weekly 2faced shorts were closed out with a profit of 1.07% for the one week for a system total of 4.08% while the bench mark spy returned a 0.56% profit during the same week:
the weekly 2faced shorts closed out on friday, 2013/2/08 with a profit of 1.07%, remember these stocks are shorted and if profitable trades they should show decreases, therefore, the returns are in red:
the weekly 2faced system is still a work in progress, i believe with some fine tuning i can increase weekly returns.
monday, after market update, 2013/02/11
A. short term indicators/systems:
eliott PSTT: remains on buy signal. the most heavily weighted indicator.
qqq indicator: +4, down from +5, remains on buy signal.need 0 to sell ………and -6 to short..
smart money indicator: -8 , up from -10. remains on sell signal.
feb. monthly 2faced longs 0.07% loss today.
feb. monthly 2faced shorts 1.37% loss today.
weekly 2faced longs , new algorithm 0.87% profit today
weekly 2faced shorts, new algorithm,0.37% loss today
still working on fine tuning the algo for both the weekly and daily 2faced systems.
B. long term indicators or systems:
crash indicator at +6 from friday, next update on 2013/02/15. a rare -10 signals a 2008 type of crash.
no trades today. still 99% cash except for spy puts.
long term folio buy signal possibly coming up, buy aapl, a 10% allocation of total portfolio, watch for signal.
D. stock watch:
long break outs:kerx, sgmo, isis mcbc, svu, cndo,ctcm., adding furx,mcbc and bby
actions, cndo probably broke out this week.
short break outs: mflix, fbc, sanm, fbc, iag, osis. adding lqdt.
i remain 99% cash and 1% in march spy puts awaiting at least a 3% pullback in which to load up on longs . watching aapl for a possible long signal in the long term folio for next week.
cheers from venice, italy.
continue to watch the comments section for daily market updates with trades and system updates.
Submitted on 2013/02/11 at 8:17 am:
the new weekly 2faced trades are:
the new weekly shorts are: psmt ann, tck, nsp, ivc, pmfg, echo, guid, ssd and rvbd.
the new weekly longs are sgi, rsh, cimt, sncr, lci, ntwk, manu, edap, whx and ntap.
purchases will reflect friday’s closing prices, 2013/02/08.