Money stayed stuffed in mattress

...cont'd from yesterday...

Cont’d example of application of Stan Weinstein's Secrets For Profiting in Bull and Bear Markets for the purpose of deciding whether to buy, sell or keep my money safely tucked away in my mattress.

WARNING: The contents hereof shall not be construed or relied upon as investment advice, and the contents herein shall not be relied upon to do anything or refrain from doing anything.

Yesterday, April 27, 2009, SPY showed the following at the end of the day after all trading had been completed yesterday.

Day Chart. Stage 2 with Gravestone Doji. Expectation today was downward price direction.

Hourly Chart. Stage 3, sideways price movement, but downwards if price breaks below 85.50. Targe is about 84.

Half-Hourly Chart. Stage 4, price definitely downwards, target below is 85, not 84 as suggested by Hourly Chart.

Quarter Hour Chart. Stage 3, sideways prices expected. Range bound between high of 87 and low of 85.50. But if price breaks below 85.50 then expect more downward movement.

Inferences. Price will be sideways until break down below 85.50, after which price will go down to 85 and possibly 84; alternatively, if price breaks to the upside, it could go to about 94.50 before taking a rest.

Decision. For today, wait for price to break out of the Range between a high of 87.00 and a low of 85.50, keeping my money safely tucked away in my mattress until that occurs. Meanwhile, look for stocks with similar pattern but greater volatility to short sell when and if SPY breaks below 85.50 or to go long above 87.00.

Results.

On Tuesday, April 28, 2009, SPY opened at around 85, gapping down below yesterday’s range. SPY then went up to about 86, then went sideways between about 86.30 upside and 85.70 downside. SPY briefly poked above the upside to about 86.60 and promptly fell back inside the range, continuing down to poke below the lower end of the range, going as far as 85.50 downside.

Throughout the day, SPY did not trigger the cue for going long so no long position taken.

SPY opened gap down triggering the cue for going short. But instead of going down some more, SPY went up from there back into yesterday’s range.

...cont'd tomorrow...

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