GDX Robot in Cash, RT GDX Short - April 5, 2012

[Billy]

The GDX robot covered its long position on a stop hit at the open yesterday. The GDX Money Flow is in short mode. But the EOD robot found no statistical edge for entering a short position today and it will wait in cash for the next signal.

Because it doesn’t take ST/LT edges into consideration, the RT model holds its short position until the PM Money Flow either
- Hits the Oversold level at -1.45%
- Or trades back above the MF average + porosity
The porosity for today is 0.123%.

The RT Money Flow closed at -0.66% much closer to the average than to the OS level. If large players are buying the likely forced selling from margin calls early today, the RT model could quickly reverse its short position to long. Otherwise, expecting a violent capitulation move to the oversold level looks quite realistic.



The fact that the EOD robot could not find any edge for shorting hints at limited downside potential from the current price level. The total strength of the floor support clusters (11 +18 = 29) far outweighs the total strength of floor resistance clusters (3 + 4 =7) and it should help a potential rebound from this week’s sell-off.
Billy

[roberto.giusto]

Billy,

regarding the RT system, should the oversold level (-1.45%) be reached, a new long would be triggered only if and when that level is crossed back above from below, right?

Sorry if I make you repeat or correct that, but I am still learning the new set of rules.

Also, should you need to write any important message during the day regarding GDX, could you use the notification message thread in order to send an email to all those that are subscribed?

Thank you,


Roberto

[Pascal]

Checking in from Santorini island.

The oversold level triggers a long signal as soon as we cross below =1.45%
The overbought level triggers a short/cash signal when we cross back below the level after having crossed above it.

I see that everything is doing well while I am away.
I am basically off=line most of the time, because we are at see at night time, which is during market hours due to the time difference.

I'll catch up with the market from next week.


Pascal

Billy,

regarding the RT system, should the oversold level (-1.45%) be reached, a new long would be triggered only if and when that level is crossed back above from below, right?

Sorry if I make you repeat or correct that, but I am still learning the new set of rules.

Also, should you need to write any important message during the day regarding GDX, could you use the notification message thread in order to send an email to all those that are subscribed?

Thank you,


Roberto

[roberto.giusto]

Thanks Pascal,

enjoy your well deserved holiday and forget about us! :)


Roberto

[Billy]

Roberto,

I'll send a GDX robot notification if there is a RT signal change. Details will be given in the Algo forum.
Billy