Tuesday, December 22, 2009

The QLD VIXEN

Here's a snapshot of QLD using the VIVEN setup. To help confirm short term trend I've tagged on the Schwab hi/lo new count scroller linked to the NAZ and the Schwab Dynamic Ticker which displays on a tick by tick basis the momentum and volume of a user defined symbol list. In this case I've set up a symbol list which includes the movers and shakers in the Qs which comprise outliers in my various 3 finger lead systems and which use higher beta stock components of an underlying ETF to determine momentum in that ETF.
The simple dynamic visual signals of the scrollers and DT (red or green) will keep you on the right side of momentum 90% of the time.
We're using the QLD in lieu of the Qs strictly to take advantage of the 2x leverage offered by this product. One of the concerns voiced by some readers has been the inability of the VIXEN to pick tops and bottoms of the short term cycles. I'm not bothered by this behavior, rather I seek it as I prefer to take the "sweet spot" easy money out of a trade rather than get faked out by false breakouts and breakdowns. That's just me.
IRA traders can also use a combination of the QID and QLD (2x short, 2x long) to trade both sides of the VIXEN and avoid short selling restrictions
Some examples of the 3 finger lead concept, including actual coding language can be found at http://bzbtrader.blogspot.com/2008/08/3-finger-lead.html.

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