Lately long side moves on 30 TF in XOM
have been too aggressive to capitalize on as my signals appear too late. I have the same issue only short side on SPX
. This merely tells the trending direction of a security along with giving the probability of what direction a sustained move in a security will go. Going back to the SPX
example, the short side moves are incredibly aggressive and fast and each short opportunity is immediately removed by a rush to buy more given that a lower SPX
presents a good opportunity to add to a position or enter if one hasn't done so already (probably very rare).
I am unsure of how long this opportunity will last or even if it will reach the 40 basis point increase I am expecting prior to earnings
. Given the lack of strength in previous XOM
rallies it is likely it dies out fast.
A rule I have found to be important for this system is exiting prior to earnings
. Some people are good at playing earnings
but as there is no math involved and it's merely an emotional catalyst for stocks, I will stay away. I will post charts that will show the importance of having this principle.