Larry's Market Comments at Critical Points

[hooyatodd]

<<<I hate moving averages>>>

It’s interesting you say that, as the 2dma looks like a special case where the signal criterion “wipes out” the MA. See if this makes sense:

I think you tested this:
2dma = [BP(n) + BP(n-1)]/2
be long on day n+1 when BP(n) > 2dma

which can be simplified to:
be long on day n+1 when BP(n) > BP(n-1)

The 2dma case would be long the day after every daily advance in the BP and short the day after every daily decline in the BP, note that it doesn't depend on a MA.

Sounds like you aren’t interested in pursing this, so I’ll take it back to my cave and beat on it for a while. If I find anything useful I’ll let you know. Thanks again.

Todd