Trading signal occurs in FEMKX model portfolio: Sell Cash Buy FEMKX.
After surviving the end of the world, will we survive the fiscal cliff? S&P 500 index closed down almost one percent Friday after republican cancelled the vote for plan B to avoid the fiscal cliff. However, S&P 500 index still closed the week at 1430, up 1.17%. Dow Jones Industrial Average gained 0.43%, and Nasdaq composite increased 1.67%. With fiscal cliff negotiation in jeopardy, the trading next week will be more volatile than ever.
After the last sell signal, the momentum indicator, STO[15,1], of FEMKX has never dipped below 50. Instead, its momentum came back up above 80 and the price has broken above its resistance at $22.40. In this case, the last sell signal is treated as a false signal and a buy signal is issued again after 30 days. In the past, we have had a couple of false buy signals, but this is the first false sell signal in the more than 5 year history of the FEMKX timing system. It just shows that no system is 100%, but follow it with discipline is the way to achieve longer term success.
1 comment:
Interesting chart
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