McClellan (T2106) Exit at hand

As a follow up to my post on the -200 reading on the T2106 indicator and the backtest I ran, it looks like we’ll be adding another winning trade to the list of past winners. The indicator more than likely will have a closing value above zero at the close today which was the exit we used in the backtest. Intraday it is above that value. We nailed that bottom perfectly and are up 44 SP points. Nice.

For some reason this particular buy signal seemed to really rub some people the other way. I received quite a few emails/IM’s that said I was stupid/crazy/perma bull - all I can say is making statistically probable trades is rarely easy. It’s always during some crisis. This time it was surging bond yields. My point is it was not the time to be short based upon our historical backtest. For those that were - my brokerage account thanks you.

I will do a follow up tonight to make sure we get the zero cross for a closing value.

Have a Great Day!

Dave Johnson