Whippy Market

The market seems to one with the Whip. Slicing people both ways. First it takes the shorts up by winding upwards on super breadth and then in the same manner, shakes the bulls by its horns again on super powerful breadth numbers.

Going into this holiday weekend (veterans day, bank holiday, school holiday), the heavy selling of two days ago seems like it has been completely forgotten, as the market is up strongly today. VIX is back below 30 which is a good sign. I expect the EU drama to continue.

However our trusted indicator is flashing a sell signal. So one has to respect that and be cautious and protect 401k. I am sitting tightly in CASH with 401k up 31% for the year....

Confirmation Signals for 9 EMA VIDYA BANDS

Couple weeks ago, I had posted 9 EMA VIDYA BANDS that I use with TICKS.  The same 9 EMA code works nicely on daily basis also. I use Stochastics as my confirming signals.

Yesterday evening, one of my students e-mailed me a old article from 1993. That article indicated use of 72 period CCI along with 5 period average. I test drove that system along with 9 EMA VIDYA bands and I was surprised to see how nicely they match up.

He ran some backtesting using TOS's on demand service and he concluded that trading 10 contracts since Feb, 2010 to the present would give you a gross profit of whopping $743,430. So catching even 1/2 of these profits would be just awesome. 

If you need this CCI code, please e-mail me at marketing1977@gmail.com