The AIQ code for the monthly moving average and related system described in “Trading High-Yield Bonds Using ETFs” by Brooke Gardner in this issue is provided at the website noted below.

Although this is a simple moving average system, the use of the monthly
data series presented a challenge, since the EDS module of the AIQ
software does not provide access to a monthly bar. The charting module
does support the monthly chart, but in the EDS code, the monthly bar
cannot be accessed directly.

I tried two different approaches, and both seemed to work. The first
one involved creating a monthly data series by downloading a monthly
.csv file from Yahoo! Finance and then importing the data file into a
newly created ticker using the DTU import utility. This worked but
proved to be too much effort if I wanted to get several bond funds. In
addition, the update would have to be done manually. To use this data
file, we set the input “UseMoDataFile” to 1. Then I tried coding up a
monthly close using daily data files. This took a bit of code but any
daily data file will work, without modification, with this approach. To
use a daily data file, set the “UseMoDataFile” to zero.

The other input parameter allows us to find the end of the month when
using a daily data file. As one option, you could use the first day of
the new month as the signal day by setting “UseEndOfMonthC” to zero.
However, for backtesting and also to match the author’s approach, I set
the “UseEndOfMonthC” to “1” so that we get the signals from the last bar of the month. In the EDS file for the backtest, I then enter on the open of the first bar of the month.

Figure 8 shows a daily chart of VVR with an eight-month moving average.

This code and EDS file can be downloaded from www.TradersEdgeSystems.com/traderstips.htm. (The code is also shown below.

!TRADING HIGH-YIELD BONDS USING ETFs
!Author: Brooke Gardner
!Coded by: Richard Denning 04/17/12
!www.TradersEdgeSystems.com

!INPUTS:
UseMoDataFile is 0.
UseEndOfMonthC is 1.

!ABBREVIATIONS:
C is [close].
O is [open].
C1 is valresult(C,1).
OSD is offsettodate(month(),day(),year()).
SMA8 is simpleavg(C,8).
HD if hasdatafor(21*8+5)>= 21*8.

Mo is month().
Mo1 is valresult(month(),1).
NewMo if Mo <> Mo1.
OneMoBackDate is scanany(NewMo,25,1). 
OneMoBackOS is scanany(NewMo,25,1) then OSD.
TwoMoBackOS is scanany(NewMo,25,^OneMoBackOS+1) then OSD.
ThreeMoBackOS is scanany(NewMo,25,^TwoMoBackOS+1) then OSD.
FourMoBackOS is scanany(NewMo,25,^ThreeMoBackOS+1) then OSD.
FiveMoBackOS is scanany(NewMo,25,^FourMoBackOS+1) then OSD.
SixMoBackOS is scanany(NewMo,25,^FiveMoBackOS+1) then OSD.
SevenMoBackOS is scanany(NewMo,25,^SixMoBackOS+1) then OSD.
EightMoBackOS is scanany(NewMo,25,^SevenMoBackOS+1) then OSD.

Cm is iff(UseEndOfMonthC = 1,C1,C).

MonC1 is valresult(Cm,^OneMoBackOS).
MonC2 is valresult(Cm,^TwoMoBackOS).
MonC3 is valresult(Cm,^ThreeMoBackOS).
MonC4 is valresult(Cm,^FourMoBackOS).
MonC5 is valresult(Cm,^FiveMoBackOS).
MonC6 is valresult(Cm,^SixMoBackOS).
MonC7 is valresult(Cm,^SevenMoBackOS).
MonC8 is valresult(Cm,^EightMoBackOS).

Cmo is iff(NewMo,Cm,MonC1).
Cmo1 is iff(NewMo,MonC1,MonC2).
Cmo2 is iff(NewMo,MonC2,MonC3).
Cmo3 is iff(NewMo,MonC3,MonC4).
Cmo4 is iff(NewMo,MonC4,MonC5).
Cmo5 is iff(NewMo,MonC5,MonC6).
Cmo6 is iff(NewMo,MonC6,MonC7).
Cmo7 is iff(NewMo,MonC7,MonC8).

EightMoSMA is iff(UseMoDataFile=0,(Cmo+Cmo1+Cmo2+Cmo3+Cmo4+Cmo5+Cmo6+Cmo7)/8,SMA8).

Buy if Cmo > EightMoSMA and HD.
Sell if Cmo < EightMoSMA and HD.

ListValues if 1.

Too late now, but the good news is you’re among the first to hear about this
full day options training with live trading. So there’s still a chance you can
get in and reserve your seat.

Now we know what you’re thinking. Full-day seminar on options training, with
live trading, taught by Richard Muller, the Richard Muller, it’s going to cost a
bomb. 1995 GBP that’s our regular price for two day seminars, so a one day
seminar would have to be at least 900 GBP right? Normally yes. A full day of
option training capped with live trading in person with Richard Muller 990 GBP
is the going rate.

However, Richard is on fire! When Richard’s on fire, his trading is going
well and like any successful trader, he wants to share the secret recipe of his
success with other traders.

Yes you heard correctly 195 GBP for a full day of options training and live
trading. That’s it. I think you’ll agree that’s a steal.

There’s only one caveat. When we run out of seats, the offer’s closed. We
don’t want more than a dozen or so people, and the places are filling up fast.
Act now or you’ll miss out.

P.S.
We don’t know when Richard will repeat this offer again. This could
be the only opportunity for a while.

At today’s Market Prism webinar Richard Muller uncovered a host of stock and
option plays for the long and short side of the market. Talk about net
neutral. Richard also reviewed the prior Market Prism webinars and the
short list of candidates he uncovered to see how they were performing.
Doing very well was the verdict, even in these difficult market
conditions. ****** The option selections were particularly impressive ******

All analysis is undertaken using AIQ TradingExpert Pro. Richard uses Market Timing, Sector and Stock Expert Ratings with Phase confirmation. He uses support and resistance moving averages and trendlines. The Quotes/barometer area is used for his trading list of candidates. He also uses AIQ Reports, the Market Log, Signal Review and more.

Watch the recording at http://connectpro39608568.adobeconnect.com/p6b93r5y7vi/

If you attended the May 30th Market Prism session, we hoped you gained some insight into the market and possible stock and options setups. If you missed the session, don’t worry, Richard has made available the recording.

In this 40 minute session, Richard covered the big picture market review of the S&P 500, Nasdaq, and the Dow Jones Index. This was followed by Sector rotation review: A detail look at the sectors to spot the ones where there is strength, and weakness.

Click on this link to view the recording http://connectpro39608568.adobeconnect.com/p7fb34oamc9/

Complimentary access to Richard Muller’s Market Analysis at the Trading Prism webinar Wed May 23rd, 2pm eastern, 7pm London.

Currently Richard Muller is a Proprietary Trader, Senior Instructor
at The Trading Prism, and former global equities analyst with Thomson
Reuters, where he delivered investment ideas on the Reuters Insider
financial TV channel.

Agenda

• Big picture market review of the S&P 500, Nasdaq Comp, and the Dow
  Jones Index. What the expert ratings are telling us of where the market
  might be heading next – FREE ACCESS
• Sector rotation review: A detail look at the sectors to spot the
  ones where there is strength, and weakness – SUBSCRIBER ACCESS ONLY
• Individual stock trading strategies discussed: A look at potential
  trade ideas to add to your watch list – SUBSCRIBER ACCESS ONLY
• Review of prior weeks potential trade ideas that we added to watch list – SUBSCRIBER ACCESS ONLY

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