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Welcome to the Seeking Alpha Instablog for www.STRATEGYDESKCODE.com, acquired and operated by Kingship Capital Advisors, LLC. We have built custom algorithms for Ameritrade's Strategydesk trading program that will help you maximize your gains and minimize your losses. The alogorithms work with... More
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  • March 11, 2010 S&P500 Floating Away In a Fairytale Rally 2 comments
    Mar 11, 2010 11:07 PM


    Good Evening!

           I tightened up the diagonal trendline that we're following and changed it to a blue color for it to stand out.  I moved it a bit to catch as many candle closes as i could from the past that tagged that line, it's much more accurate now.  Today you can see the S&P closed right under it.  
           We haven't gotten a sell signal yet on the algorithm in timeframes above the 4 hour charts.  This rally is a little long in the tooth.  But again, we're going to wait for confirmation to go short. 
            It's always difficult to manage emotions when trading.  Sometimes, we just feel our skills as a trader are just so finely tuned and that there's no way we could be wrong.  We do also know though, that the stock market can remain irrational far longer than an individual can remain solvent. 
           So It's important to find a system that works, rather than hope and wish that you're on the right side of the trade.  
           There are so many factors that are aligning from a contrarian outlook as was pointed out in the previous blog posts here. Yes, I will be in a state of disbelief considering all of the clues if the market keeps floating higher in its fairytale rally and no sell signal is generated.  But, I'd be happy that the trading algorithm organized my methodology and kept my emotions out of trouble.
           
           Will keep you posted.

    Regards,
    A.W


    Disclosure: no positions
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Comments (2)
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  • wook
    , contributor
    Comment (1) | Send Message
     
    A mixture of RSO and truth. Fairytale rally indeed. Is the algorithm looking for red candles to roll over to a sell signal on the daily chart? Surely we can't get much above your Jan. 14 high. Would a horizontal line peak to peak help draw conclusions AW?
    12 Mar 2010, 01:21 AM Reply Like
  • Strategydeskcode
    , contributor
    Comments (14) | Send Message
     
    Author’s reply » Hi Wook, yes that peak to peak line is at the 1150 mark which is significant resistance. A successive two candle close above that mark would be needed for the rally to continue.
    15 Mar 2010, 04:52 PM Reply Like
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