Friday, October 21, 2011

Buy RUSS - $45.38

It appears to me that the daily cycle for the US Dollar has bottomed today on Day 26. I could be wrong, of course, but this late in a cycle that typically lasts 20 - 24 days I am guessing that if I am a little off it is likely to be by not too much.

With that thought I decided to test drive some Direxion Russia Bear 3X (RUSS) with a purchase at $45.38.

This 15 minute chart shows a True Strength Index (TSI) indicator break with BUY signal.

Above the TSI indicator is a custom indicator I concocted some time ago and have been experimenting with more recently. It simply indicators when certain technical conditions are active, such as a positive close for that bar, or when a reading of an indicator, such as the TSI, but also the Demand Index and the VolumeFlowIndicator, reaches a desired measurement. When all conditions, or those that I arbitrarily deem most important are then satisfied, the entire column is then highlighted, thereby drawing visual attention to a potentially significant buying opportunity.

Obviously, when none of the indicators are flashing a favorable condition price is usually in a sharp decline (SELL signal). In any event I plan to craft another of these concoctions that specifically attempts to identify sell signals, as opposed to buy signals.

My TSI Trading record has been updated.


  1. Hi John
    Please advice SDS Nov Call

  2. Hi Norman - sounds like your timing would be about perfect.

  3. Thanks John just brought Nov Call
    Happy Trading

  4. I will put this on my watch list. Anything else worth watching? How do you like EWG?

  5. So John,
    You must be bearish. Well, I've been trying to short the market all the way up from 1080 and it hasn't worked to well. But, I think it't worth another try if the spx gets up to about 1260.... I think I will use SPXU. Do you think silver is headed up or down? I own one little call option on SLV.... Just in case
    the bearish consolidation turns positive.
    I haven't had the chance to congratulate you on the beautiful trading you did a while back. That was sensational. Keep it up.

  6. hello john
    I just got back from vacation and im looking at the tsi on my playform. I will need some help from my broker but i am working on it.

    Looking at the dxy on your stock quotes, i dont see any indication of a buy or sell. All i see it saying is price is falling.
    Any thoughts on the dollar?


  7. Thanks for the post as always

  8. John I think you need to ditch the 3x ETF's. They are for day trading only.

  9. John, would it be possible for you to update your gold and silver work of a couple weeks back? If they indeed breakout as you thought they might it would be the call of the century. Thanks.

  10. i do believe there was a zero crossover at the same time Gary made the call to buy. Of course it was the breakout and the buying got heavy which caused the zero crossover, but its very interesting.
    I got the tsi on my daniels platform. It is very interesting. my broker is interested in it to
    jeffwilm jeff the flea =)

  11. Hi John,

    Love your work, but you are playing with fire here. I have said it before: leveraged ETF's are not meant to hold overnight. Next day after your purchase it was down 20%. Never risk more than 2% per trade.

    The TSI on leveraged ETF's is misleading. You know why? Because this ETF is a leveraged derivative of a derivative (!).

    You always have to check the underlying asset.

    See this video for example:

    Don't check the OIL etf's, check OIL itself!

  12. John
    are you ok? i hope all is well. pop in and say hi on garys blog or something
    jeff the flea jeffwilm

  13. Hey John,

    Havent heard from you in a while. Hope all is going well on your end.

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