Things looked bleak Monday morning as the Dow surrendered some 130 points before storming back in the last hour to wipe out all losses. The only negative about the comeback was that it occurred on very low volume.
It’s been a recurring theme lately that early bearish tendencies did not hold, and the bulls ended up in the driver’s seat.
Yesterday’s late buying was triggered by Nobel Prize winning economist Paul Krugman, who commented that the U.S. economy may start to emerge from the recession in September. This hopeful outlook turned what appeared to be a rut into a rebound rally. Go figure.
Not much changed with our Trend Tracking Indexes (TTIs), which are now showing the following positions:
Domestic TTI: +0.50%
International TTI: +8.84%
Hedge TTI: +0.45%
We are holding all positions subject to our sell stops.
Comments 4
Ulli,
If I want to use a weekly moving average, how do I convert a daily ma to a weekly ma? What weekly indicators are most useful since 200 week seems too long. Thank you.
Anon,
Simple; you use weekending prices instead of daily prices and calculate your average based on that.
I only use the 39-week M/A with my trend tracking system. You need to do your own research to find alternatives.
Ulli…
You can get moving averages on Yahoo Finance charts and run the cursor to any date on the chart.
A 39-week MA is about the same as a 200 day MA. The only advantage I can see between the two is the weekly MA is easier to calculate if you do it yourself.
If you do it yourself, the Exponential Moving average is easier to calculate than the simple moving average and has very little difference for longer periods such as 200 days.
Hi Anon,
You had a question about converting daily moving averages to weekly. It is simple just go to http://www.stockcharts.com then set up a free Sharp Chart of $WLSH for the general market or your favorite mutual fund for instance. You have a choice of using daily or weekly type chart. Set it to a 40 week SMA or 39 week SMA as an example and look at all the other settings such as price set to HLC, OHLC, thin line etc. Then some other indicators such as MACD, slow stochastics etc.
T.M.