Market Heat Index Receives Major Update

Using my new skills in the R programming language, I have officially coded the steps to create the Market Heat Index. As a result of this update, the values have been changed and now extend back to 2011 on the blog. The spirit of the Index is still the same and gives a sense of the aggregate bullishness or bearishness of all the stocks in the NYSE and NASDAQ.

Note: The POS Signal has not been affected by this change.

POS Stays Quiet in Strong Uptrending Markets

If you are curious why the POS has not signaled recently, then refer to the explanation of the system at http://maintrimmercapital.blogspot.com/2014/11/point-of-sail-market-score-history.html.

The system looks for entry points relative to the current trend, but the markets have to pull back significantly enough to generate the signals properly. For the last three months, market conditions have been extremely bullish, price has continued to move upwards quickly, and few signals have been generated.

The POS tends to underperform in market environments like these, so please keep this in mind as you watch for its signals.

POS Signals Long Position on US Market

According to the internal rules for the Point of Sail Index, a market BUY signal occurred on June, 14th, so a long position will be opened at the market close tomorrow, June, 15th.

This will be the third trade of 2016. Keep in mind, the POS is an automated trading system based on technical indicators and pre-written rules.

For more on the POS Index and the trading system, visit: POS Market Scores History Explained