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Market Lab Report - 620 Chart Notes from Gil

We have had an influx of members asking about the "620 strategy." As the person who first devised it, let me say that everyone is getting a bit carried away with their perception that this is some magical system. It is not. I first started using a five-minute intraday chart with 6-period and 20-period exponential moving-averages and a MACD set to (6,20,9,C) to trade foreign currencies. After a while, I began to notice that I could use it time entries and exits in short-sale positions at points of logical resistance or support that I could see on the DAILY chart. It is nothing more than a tool that I use, and will not get you out of existing positions on a day-to-day basis. I only use it to time entries and exits on stocks INTRADAY. Another way I use it is to watch for reversals in the major market indexes and then use it to time entries and exits in leveraged, inverse ETFs. I have discussed all of this repeatedly in our live webinars, and it remains a bonus feature, if you will, of what webinar subscribers receive with this additional service.

I'm not sure why everyone seems to think this is a "strategy" or a trading "system," because it is not. It is a tool, and it is subject to numerous contextual factors such as what is on with the general market or the individual stock/ETF in question and their positions within the broader context of their daily and, occasionally, weekly charts. One could likely just as easily use a different chart set-up, say a 15-minute intraday chart with 9-period and 27-period exponential moving averages or whatever else they may devise that works for them. It's really a matter of learning to use it as an intraday timing tool, not a system.

It seems that some have latched onto the 620-chart as some mechanical system or strategy, which it is most definitely is not. It is a tool that one can become familiar with using through their own experience, nothing more, nothing less. So I am herewith putting an end to this perception, which is patently false. All I know is that if you are still long stocks and have been for the past 2-3 weeks, it isn't going to save you now.

Gil Morales
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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