In our user manual, we have discussed that it is very beneficial to align the trades with the general direction of NASDAQ.
Yesterday's NASDAQ Comp charts showed that there was still upside left for the market.
So when the ALTR buy alert shown below came along, it had added incentive for taking it.
Notice that at the time of the alert both the components of the Pink oscillator (top right panel) i.e. the Green and the Violet have turned upwards. The entry price was $26.63. The fast oscillators in this chart don't have much influence on the price (Reminder: price is the sum of all the oscillators and indicators).
The Black oscillator hasn't yet turned and the Blue oscillator is still up. So the only concern for safety comes from the Daily Model (bottom left) that has turned down.
But it is a short term type 6 alert with 0.9 trading days duration. Learn more about alerts here or in the manual.

As expected, after the dip in the open the market turned around (we'll get to the COMP chart shortly). By 11:15am today, as seen from the charts today, we can see that the fast oscillators that have gained magnitude are turning down. At this point with the price at $27.57, we can exit with a very neat 3.5% profit without waiting for the automated exit alert.

In fact the automated exit alert was issued for the trade 12:30 at a price of $27.50 as the Pink oscillator had turned down.

Picking trades that are aligned with NASDAQ would have also led to trades on RFMD and DD yesterday as can been seen in the charts at our site.

Now let us look at the zoomed in top panels of the NASDAQ COMP Intraday chart from 12:45 today. We can see how as expected from yesterday's charts, the fast oscillators moved down first before turning around and making the markets positive.

The market movement today, as can be seen above, was well correlated with the oscillators. The media had to first find a causation in European worries for the down open and then reassign the cause to report on retail sales once the market turn around :-)

The markets have opened September with a bang and NASDAQ was trading over 2.5% up in the morning session just as our Composite Index charts had indicated yesterday!

Before we get to today's NASDAQ charts, here are 6 round trip trades our automated alerts(entry and exit) delivered since yesterday (8/31). There are three buys as seen from the positive alert numbers and three shorts. To learn more about alert numbers, visit this blog or check out our manual.

No.  Ticker          Alert                Entry Price        Entry Time      Exit Price       Exit Time      Profit %

1.     STMP     56508184513        $11.05              11:40               $11.25           15.53            1.8%

2.     AMKR     62316314911        $5.23                10:28               $5.29            12:00(9/1)      1.1%

3.     CRNT      79912142204       $8.55                12:58              $8.75            10:25(9/1)       2.3%

4.     RFMD     -54008206007        $4.9                  14:07               $4.85            15:07            1.0%
 
5.     ATML      -72811164206        $5.87                14:09               $5.79            15:39            1.3%

6.     BBY      -54507074404         $31.65                14:10              $31.38           14:57            0.8%

This performance is from blindly following the alert. As we have seen in an earlier blog entry, the performance can be improved by fine tuning the automated alert entries and exits by consulting the charts. You will notice that the alerts listed above have odds (i.e. TR*PR) above 3.

Now let us look at the NASDAQ Composite charts. In the Intraday chart below, we can see that the Pink oscillator has surged and its magnitude has been redistributed into two components: Violet and Green. Remember that Green had disappeared yesterday because of lack of magnitude.

And here is the End-of-Day chart from yesterday. The top left panel has been zoomed in to show the upward crossing point.

From the charts above, you can access the movement of the market for the future. Keep in mind that the faster oscillators have immediate impact but the Price/Index is always the sum of the oscillators and the indicators.

In a month, our service delivers well over 200 round trip alerts.
By using the Promo Code: FALL2010 you can subscribe for just $49.99 per month.
Plus there is a 30-day risk free trial for you to get to know the system and test it out! SIGN UP NOW!!

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