Today the model is in "overbought" region and should be taken as a signal to close out the last trade recommended.
Today's closing price is 76.09 which I will use to calculate the return %.
Trades Closed
QLD Entry 4/9/08 73.97 Exit 4/16/08 76.09 % Return = 2.87
So this ended up being a nice example for the first trade on this blog. It was not exceptionally good or bad but it was positive which is nice. For someone who is actually trading this, you would exit tomorrow morning. If you can consistently make trades like this every couple weeks your return would far outpace the market and keep you out during most of the bad times.
At this point I will wait for the next short-term LOW extreme to trigger in the model. There is much evidence that the next few months should be generally positive, so I don't want to buy QID on this HIGH extreme to try and make money on the market declining from here.
Next post may be a random though later in the week.
Pete
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