It’s time to catch up on Weekly Trend Following positions, the 52-Week Strategy, and the ProShares Ultra S&P500 2X Shares (SSO). We looked at this last week, but the indicator didn’t close above zero when the screens were switched off for the weekend, notes Ian Muprhy, founder of Murphy Trading.
The situation looked a little more positive Friday as we were currently above zero for the first time since Feb. 14.
Admittedly, the indicator is positive by just two points (circle), and SSO continues to trade below the -1ATR line and just above the -1 Keltner channel as shown in the insert chart above. That needs to improve because most triggers happen when the price is above those lines.
On a daily basis, SSO’s price washed out the lows and closed higher earlier last week. VIX also closed negatively. The only thing missing was the expansion and contraction of my indicators, which must close outside the channel for at least one day and then return.
Why wasn’t it a bull trigger for my Help Strategy? Because the trend is still down and bearish, and bull triggers only occur on a pullback in a bullish trend.
