Tuesday, May 31, 2011

SPY gives a possible BUY opportunity 5/31/11

My SPY trading system gave a possible BUY opportunity signal today. I can use a Buy Stop at 134.92 for tomorrow. This means that it is saying I can buy SPY if it exceeds 134.92 price. Market close was at $134.90. I would prefer a Buy Stop value slightly above today’s high of 134.92 at 134.95 but I realize we are splitting hairs at this point. The trading system is giving a possible buy signal after a long sideways movement.

I have also noticed that my OBV (On Balance Volume) line graph located above the volume bars at the bottom of the chart has broken its down trend line. That is a promising signal. Up volume appears to be supporting the trading system’s call.

I will use the signal to add to my long positions in my 401K if SPY exceeds 134.92. I will follow my system...





 


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