Here's an idea for a short term system that has a positive expectancy (at least for the last 2 years) Any time the S&P has 2 consective down days with a total loss of at least 1.4% find the S&P stocks that bucked the trend and showed hollow white candlesticks both days. Buy on the open the third day. Sell on any close thats profitable or after 10 days. Stop loss at 5%. Also if the stock gaps up more than 1% on the open pass on the trade or more realistically just immediately close the trade. Using 10% of capital per trade the system is up about 3.25% this year which is probably about as good as you can get with a short term system. I thought I might throw that out there for anyone who likes the short term trades. Ah for the good old days when there was enough volatility to make these systems really pay off. Although I guess if you can make 4 or 5% a year and not have your money tied up very long that's not too bad.

Gary

Gary,

Please define hollow white candlestick. I ask because, I sometimes read about red, white and black sticks, when I thought there were only 2 colors to remember.

Thanks,
Steve

Also, what's the difference between hollow and solid? Thanks.

Steve,
A hollow white candle stick just means that the stock closed higher than where it opened and closed higher than the day before. A solid black candlestick opened higher than it closed but still closed higher than the day before. So far out of the 12 stocks that signaled 2 days ago, AHC, BMS, COF, CTL, CZN, GT, MCK, MSFT, MYG, NCR, TWX, & VIA/B only GT, CTL & MSFT haven't closed profitable. Up 13.99% so far.

Gary