ADX Strategy Update

The ADX portfolio is moving along but I am implementing some changes to the enter/exit strategy due to its current rigidness.

The Enter Strategy

1. ADX is rising - between 20-27. We will change to 18-25.
2. +DI is above 20
3. -DI is below 20

Exit Strategy

1. After the ADX closes with a 35, you sell the position on the 5th day it closes at 35 consecutively. (If it closes above for 3 days, then dips below for 2, and back up for 2 more up days, you now have to wait 3 more days for the signal to confirm)
2. A 40% gain closes out the position.
3. Stock losses 15% closes out position.
4. DI - crosses above 20 you sell after 5th consecutive day close - we will delete this rule completely.
5. ADX indicator moves below 20 for a period of 5 days.  We will now change to it to 18.

If we look at JASO and the reasoning for the changes as shown.

With these added changes to the ADX strategy we will now incur more volatility in general but we still have the limit loss in place to protect us from fallout.  So far so good.  Good Luck!!

ADX Portfolio Strategy - New Buy Signal - YRCW

First off, yes, I understand YRCW is a beaten down old dirty trucking company that had an outsized balance sheet and tons of debt, especially after merging from Yellow and Roadway.

But the ADX momentum indicator is concerned about momentum only - and YRCW is showing upward momentum.

I added YRCW to the ADX portfolio. The current statistics are below in the spreadsheet. All data is based on unrealized gains/losses.

The portfolio closed out 3 trades for January. It currently holds 3 stocks in the portfolio. It is up 5% for the month/year.

SIGA gives sell signal

SIGA has traded with ADX below 20 for 5 days. We will sell today and add cash. We will also be looking for an ADX hedge using that cash position.

And the current ADX portfolio stands.

2 positions

Long JASO
Long MTU

Cash: $4,296


Looking to add a short.

ADX Portfolio Strategy - New Buy Signal

The ADX portfolio is up almost 9% for the month of January so far - the portfolio triggered 2 sell signals last week.  There is no need to rush when investing - take your time, another opportunity will present itself and so it did.

JASO - JA Solar Holdings

I have traded and blogged about JASO in the Spring of 10 post JASO the Bull  It is breaking out of a triangle and with the ADX showing upward momentum with the + DMI popping in the last jump here in January.  Overall, Im a bull on solar and solar stocks.  We will add some to the portfolio on the open, unless its bid up aggressively - then we will wait intraday, or next day to pull the trigger.

Current ADX Porfolio

Good Trading!!

Japanese Banks will run!!

MTU - Downtrendline Broken to Upside.  Looks to be a good 6 month trade.  Japan's banking system is awakening.

Bronco Drilling - EMA Crossover - Bullish

The easiest trades are usually the ones with the easily identifiable bullish patterns, and nothing is more bullish than the EMA crossover.

Is the Nasdaq headed for 3500?

Markets do things often not expected.  There are many reasons for the market to go down today, and very little reasons to argue for it to go up.  Although I believe the DJIA and SPX are probably near relative values over a 2-3yr period, I don't believe the Nasdaq can be stopped from now until then.

Based on the possible cup and handle formation in the Nasdaq, and its related calculations in its pattern, the Nasdaq may be heading to 3500 in the next 2 years. Yes, I said it, and Ill say it again - 3500 in the next 2 yrs.  I'm not going to get wordy, and self indulgent in all the reasons it can, and can't, but rather point to the technical formation and its possibilities.  If the handle breaks down, put a stop loss at 2200 and reevaluate your portfolio.

SOX - Cup and Handle? 

As a technical trader, I try not to listen to things that create to much murkiness to what the charts say.  And with that said, you can either drink from the cup, or pass!