Larry,
Does SPY (red alert, closed above it's UBB) become a BB system short? Or did you say that you tested these ETF's and they didn't work.
Thanks,
h
I didn’t say that ETF’s didn’t work. I said that with the BB system I didn’t get as good of results with some sector ETF’s as with the QQQ. But broad based index ETF’s like SPY work just fine.
I did say that according to Altucher, corroborated by my own testing, BB short signals don’t tend to work very well as a mechanical system. However, I do think they can be used selectively. And yesterday’s SPY close may be a good example of one that may work. It closed above its upper BB. It has a 5-day RSI number of 76.8. And it is right up against its 50-day moving average. However, I would take a quick profit because I’m sure the bulls feel more confident and I would be surprised if it didn’t make at least another attempt at a rally.