Monkey Throw Dart: Trading Signal Panorama

Saturday, September 18, 2010

Trading Signal Panorama

Here's a look at the recent changes to the Cheetum Market Indicator...from 30,000 feet. Actually, the three large horizontal lines are a zoomed out view of S&P 500 trading signals over the last four years. Five signals are contained in each of the three fat horizontal lines.

The signals are supposed to work together, and they do for the most part. The green colors indicate buy signals and the reddish colors indicate sell signals. The color changes run fairly close to the actual, longer-term market direction changes.

Only those pesky red spots remain. Each one of those cost $$ as they tend to generate false signals. The good news is that there is a pattern as to why they show up. If I can remove 70% of them, it will be one small step for a monkey, one giant leap for monkeykind.

Sometimes problem solving requires a wide-angle perspective.

spxsigs
On a tangential note, apparently they found the missing "a" a few years ago. Why wasn't I informed? Now what's left? Bigfoot...Loch Ness monster, and the real reason for Fat Finger Thursday?