Mike
03-05-2013, 08:02 AM
On Friday the Market Exposure Model gave us a B10, distribution day fall off buy signal. This occurs if the distribution count at some point becomes "full count minus one" (5) and subsequently declines to 4. It essentially negates the prior S3 sell signal generated by the 5-distribution count. This brought the exposure from +2 (55% invested) to +3 (75% invested).
If the NASDAQ opens above the 21-day ema (3159.67) and stays above intraday a B3 buys signal will be generated: so far the futures market points to this possibility. This would bring us from and exposure count of +3 to +4 (75% to 90% invested). Tomorrow the stall day we had on 1/28/13 will fall out of the distribution count.
Thus the MEM is leaning more bullish. I also have sensed that the short side has stalled in my own portfolio. I have taken profits in all short positions and have taken a few longs. I hold: PBY, VRX, CBI and GEOS.
If the NASDAQ opens above the 21-day ema (3159.67) and stays above intraday a B3 buys signal will be generated: so far the futures market points to this possibility. This would bring us from and exposure count of +3 to +4 (75% to 90% invested). Tomorrow the stall day we had on 1/28/13 will fall out of the distribution count.
Thus the MEM is leaning more bullish. I also have sensed that the short side has stalled in my own portfolio. I have taken profits in all short positions and have taken a few longs. I hold: PBY, VRX, CBI and GEOS.