Replies to post #1467 on Trading SPX Cycles

[northam43]

Murray - The Buy Blockers keep me disciplined in my trading system. Like right now knowing that a Monthly Buy Blocker is active, I will not attempt to buy during this 60 min Phase 1, know matter how tempting it may be. It also reduces the indicators I need to focus on.

When there are NO BUY BLOCKERS active, then I follow the rule never Buy in a Daily Phase 2. So yes, my participation for buying longs would mainly be in an established Bull market. If you look at my report on Major Market Trends. You will see that there have been 213 Bull Months and 77 Bear Months since Oct 1987.

So yes, just these two rules limit my buying of longs significantly.

Now I can tighten up or relax the Buy Blockers depending on how much I am currently invested.

If the SPX Cycle System performs as I expect it to, I should be able to get out of long trades before a major decline and I should be able to hold trades longer which should reap higher returns and I should be able to reenter a long position at the beginning of a major Bull trend.

If we are currently going into a new Bull Market, if you look at my SPX Flow Chart, I have forecasted a potential long position at the end of this Month when the Monthly Buy Blocker is due to expire. If you look at the Major Market Trend report you will see that we are currently up 17.24% off of this Bear market low and the average Bull market gains 61.16%, right now the Bear gap is only -5.65 so it's possible I could be adding long positions at around the 20% range which could give me a potential of over 40% gains in a 19 month period.

Then when the Weekly & Monthly start going into Phase 1's, I would depart my longs and start adding shorts.