These past few weeks have been difficult to trade as the market has been changing direction on a dime and making investors second guess the current trend. Two key aspects to the PrecisionCharts trading system are the Risk and Timing numbers calculated throughout each day. If we look back to Sept. 2nd '09, just one week ago, we can see a great example of how these numbers helped our subscribers benefit from this weeks move.
The above chart is a 3 month chart of SPY (S&P 500 SPDR). Across the top right hand side of the chart you will see the Risk and Timing numbers for the highlighted day (Sept. 2nd). That day the risk to trade the current buy signal was very low (19.78) and well within our acceptable level of 30 or lower, and the timing number was just above our preferred level of 80 at 81.60. When these two numbers score this high it indicates a perfect trade situation and was displayed in our "Top 25" search results for that trading day.
Analyzing those same numbers today (Sept. 09th, 2009) the risk has jumped drastically to 82.61 and timing has fallen to 67.38. This type of change generally signals a safe exit point and would keep investors from entering the trade at what may be the top of this four day rally.
If these numbers hold true, it appears that we could expect to see a double top at 104.25 or very close to it.
To learn more about the PrecisionCharts trading system click here.
09-09-2009 11:59 PM
Spencer T. Coles