A.I.M. Users Bulletin Board

[ocroft]

Hi Can Ray
I use the ZACKS site. You can use and adjust your own settings.
I was looking at a couple of your mentioned ETF'S. XME and EWZ.

http://www.zacks.com/etf/chart.php?t=XME&charttype=comparative
http://www.zacks.com/etf/chart.php?t=EWZ&charttype=comparative
http://www.zacks.com/etf/chart.php?t=GDX&charttype=comparative

A macd crossover looks imminent at this time on both XME and EWZ
which suggest a propitious time for an aim initial position.
Back in January 2014, XME did a MACD crossover indicating a propitious entry at the $39.00 level. However, it peaked at $42.00 and reversed its course to a low of $11.90.
It is now at $20.81. Remember, this is not an aim methodology problem, aim's methodology will manage this situation.
However, could ones participation in the reversal be minimized in some way?
XME hit, but it fail to penetrate its moving average reversing its course.
I wrote, "when the stocks monthly Macd does a crossover, you can anticipate that the price will rise above its moving average. I use 20/40 EMA."
So, when the expected pattern is violated, your position should be terminated until further notice. A sort of a stop loss expectation.
GDX acted as expected.
Again, this is all done visually. No attention is given a stock or ETF that has a divergence. No major move will happen until a
MACD crossover has occurred.
Also, funds will not be tied up.


Regards
ocroft