Sold Three Toe Position This Morning

October 4, 2012

This last week saw us go from over-sold conditions to over-bought. We were able to take advantage of buying the S&P 500 on sale and capturing a 1.7% gain on a 30% position. The market has the ability to remain over-bought and keep moving up. We are happy to take what is given and be happy. I've included the hourly chart and daily below.

The first chart, the hourly, shows some of the difficulty experienced while holding this position. We purchased September 27th on the bar hilited by the green circle. We just sold this morning near the current peak within the red circle. Between the two points you can see the bars broke through the lower green support line. Red flags were raised but when everything was put on the scale, continuing to hold the position ruled out and it turned out to be the correct one.

Hourly Chart showing purchase and sale prices.

Hourly Chart depicting buy and sell areas

The next chart is the daily. This gives us a more macro view. You can see the two large days on the left that caused an over-bought market become even MORE over-bought. The long over due pullback occured allowing our position.

Daily chart depicting purchase and sell points.

Daily Chart

Waiting for longer term pull back to create an opportunity for the moderate portfolios.

We have exciting news coming up that you all will love. I can't wait to put the finishing touches on and share it.

Have a great day!!

John Norquay
CEO PivotPoint Advisors

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