Saturday, August 02, 2008

Qs Weekly Update

Qs down .39 or .86% for the week. DIA -.04%, SPY up .5% & IWM (once again leading the pack) up 1 %.
Viewing the daily and weekly bar 3 linear regression channel studies above, the consolidation at the 45 level that began in July is clearly evident. While the LR11 channel on the daily bars has displayed an upward slope for the past 3 weeks, the daily technicals are developing a negative tone, and the odds at this point favor the Qs at 44.
Both the A50 and A200 have reached substantial overhead resistance at the cross of the 200 and 50 DSMAs, and once again the technicals favor the short side.
Last weekend's overextended NAMO reading turned out to be a great tell for Monday's weakness, although we still have to run more backtest studies to confirm the NAMO's applicability as a longer term trend indicator. For now, it appears useful for pinpointing imminent short term reversals. . .whether it has greater utility than that remains to be seen.
My next systems testing goal is to run backtests on the A50, A200 and NAMO to assess their predictive power. My goal is not to develop specific trading models, but simply to determine whether it is useful to continue using them as momentum indicators.

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