And check out the trades so far: |
John Townsend
Email: tsiTrader@gmail.com
Wednesday May 29, 2013
Day 1
It is my intention to update this study each day for a period of 4 weeks, after today. Following the close of each day’s trade the charts of the selected ticker symbols will be updated and I will offer a brief evaluation of that day’s price and technical developments.
I have chosen 10 ticker symbols from a smattering of market segments for this study:
1. | Boeing Co. | 6. | Gold Miner ETF | ||
2. | Crude Oil Futures | 7. | Goldman Sachs | ||
3. | US Dollar Index Futures | 8. | Home Depot | ||
4. | E-mini S&P 500 Index Futures | 9. | Microsoft Co. | ||
5. | Gold Futures | 10. | 10-Year US Treasury Note Futures |
The two indicators used in this study are the True Strength Index (TSI) set to (7,4) and a custom indicator of my creation that plots the percentage closing price is above/below its 200 day exponential moving average (ema). All charts will only use the daily time frame.
An indicator reading of ‘1’ on my custom ema indicator means that price closed exactly on its 200 day ema. A reading of 1.05 means price closed 5% above the 200 dma and a reading of 0.94 means price closed 6% below the 200 dma, and so on.
I have crafted computer code that allows me to choose which days to use for drawing perfectly straight BUY and SELL trend lines on both indicators.
If the trend line drawn is upwards in slope (anticipating a break to the downside and a SELL signal) it is colored red. A dashed gray line follows the exact trajectory of this trend line and if/when the indicator touches this extended dashed line a bell rings (you will not hear it), a message is sent to my computer screen that the trend line has been violated by the indicator (you will not see that either as it happens fairly quickly) and a red ball shows up on the dashed line to visually spot the trend line break.
The downward sloping trend line is appropriately colored green as it anticipates a trend line break of the indicator to the upside triggering a BUY signal. The familiar gray dashed line behaves as described above.
The trend line break technique will be used extensively in this study to identify both BUY and SELL signals. However, there are a number of other signals that will be observed along the way and I will point them out as I recognize them.
So here are our 10 charts that we will begin with. I took a picture of each following the close of today’s trade.
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1. Boeing Co. (BA) |
2. Crude Oil (/CL) |
3. US Dollar Index (/DX) |
4. E-mini S&P 500 Index (/ES) |
5. Gold Futures (/GC) |
6. Gold Miners ETF (GDX) |
7. Goldman Sachs (GS) |
8. Home Depot (HD) |
9. Microsoft (MSFT) |
10. 10-Year US Treasury Notes (/ZN) |
Tomorrow is Day 2.
The results should be posted tomorrow evening after the market close and before I go to sleep. Keep in touch and let me know how this is working for you, and/or how I could make it easier to use, OK?
John