Trading System Way Outperforms-Doing the "Twist"

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Maybe over the long haul the "twist" will do something good for the US economy. Maybe the best thing is that the FED stood aside allowing the market to sell off sharply on its own volition. Maybe the selloff in energy and overall commodities will help lower costs.  In the meantime, stock holders run for the exits while the DOW is yet to test August lows.

Note-Our hedge fund was up 8% in Q3 while S & P was down 14%. Mentioning more as a reason that learning to trade or at the very least, understanding what the "professionals" are doing with your money is the best education.

SPY Third time since August lows this closed under the 200 weekly moving average. We did hold the 200 monthly moving average Friday with low volume all last week and one accumulation day, no distribution days. That is one reason to use caution right here for new shorts.

DIA Not at the 200 weekly moving average yet so still a good one to watch for any signs of a rally.

QQQ Last week I wrote when giants fall they fall hard. And hard they did indeed fall.  Now, AAPL AMZN in particular, are oversold. 52.00 still some underlying support. The index itself is not oversold which means under 52.00 next support 50.00.

IWM 65.20 the 200 weekly moving average support broke. Now resistance with next support 56.50.

ETFs:

GLD The 160 EMA held. Under see the eventual test of the 200 DMA at 149. Has to clear 165 to show any signs of a base.

IYR (Real Estate) Landed right on the 200 weekly moving average with still a way to go to the August low. If any chance of rally, must clear 52.00.

IBB** (Biotechnology) Featured on chart since had an inside day and outperformed the market. In a bear phase so more looking at a short opportunity than long right now, but if market firms at all, this one be a good one to watch.

TLT (The 20 year Treasuries) soared last week. Note: a featured pick last Wednesday. A bit of a question since on how much further it can go since still working a double top with 2008 highs.

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