As of the close of Monday, June 20, 2011, the p-Indicator calculations for QQQ indicated strong buy signals with numbers that I have rarely seen before. I was very skeptical but, on hindsight, I shouldn’t have been given the indicator performance. This is the screenshot of the p-Indicator calculations for QQQ as of the close of last Monday:
P-delta values for all target/stop pairs used (1%/1%, 2%/2%, 5%/5% and 7%/7%) were larger than usual and their significance S was moderately high. P-delta is the difference between the probability of win of longs minus the probability of win for shorts per given target/stop pair. I view this number as a directional bias. P-delta values above 10 with significance higher than 4 are usually strong signals.
The following day, yesterday that is, QQQ rallied to close up 2.1%.
Have a good trading day!
Disclosure: no relevant positions.
Disclaimer: The author is not a financial advisor and does not recommend the purchase of any security or advise on the suitability of any trade or investment in any timeframe. ETF, stock, futures, forex and options trading and investing involves substantial financial risks and can result in total loss of capital. If investment or other professional advice is required, a licensed professional should be consulted.
