POS 2nd Long Signal of 2016 is Successful

The POS signaled to close the LONG trade from May, 20th, selling at the close on May, 27th. The hypothetical results of the trade for trading UPRO are a return of 6.9%. If one traded SPY, the return would be about 2.3%.

This successful trade erased the small loss from the prior trade signal, putting the system into positive territory for the year.

    

I Caught a Major Error in the Calculation of the Market Heat Index

Hey all,

I apologize for the sudden change in Heat Index today. I was working with the raw data and I realized that the calculations had been malfunctioning since April. I have fixed the problem and now the number is accurate.

This is one of the reasons why I have no trading programs based on the Heat Index right now. Again, I apologize for the mistake, and I expect the indicator to work correctly going forward.

There are no issues with my other indicators such as the POS as it is calculated differently.

Thanks for your patience,

Maintrimmer Cap

POS Signals Long Position on US Market

As per the internal rules for the Point of Sail Index, a market BUY signal occurred on May, 19th, so a long position will be opened at the market close tomorrow, May 20th.

This will be the second 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

POS Experiences Whipsaw for First Trade in 2016

The POS signaled to close the LONG trade from May, 2nd, selling at the close on May, 12th. The hypothetical results of the trade for trading UPRO are a return of -2.2%. If one traded SPY, the return would be about -0.7%.

Keep in mind that the POS moves similarly to a stochastic momentum indicator, so the strength of recent historical moves greatly effects what sort of price action will produce signals in the future. This feature respects the assumption that current momentum is related to future momentum. This principle can obviously be disagreed with and is not always historically true, but keep in mind that the POS is dependent on such an assumption, as it works well in trending markets.

POS Signals Long Position on US Market

As per the internal rules for the Point of Sail Index, a market BUY signal occurred on April, 29th, so a long position will be opened at the market close tomorrow, May 2nd.

This will be the first trade of 2016. The POS shuttered itself through the winter.  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