In the days before radar, radio and high-powered binoculars, one ship meeting another at a distance might not be able to tell the country from whence she hailed. Therefore, in the 18th century, the captain would order a “shot across the bow,” that is, a harmless cannonball lobbed across the bow of the ship. This was essentially a way to hail the ship and ask her to show her colors. If the colors were of an enemy country, the captain might then order an attack on the ship, but the shot across the bow had to be made first for it to be a legitimate engagement.Here was the first shot across the bow, a daily Sell signal for US Steel:
X Daily Trend Model
Followed by another cannonball, GOOG:
GOOG Daily Trend Model
Then the venerable DJIA following suit:
DJIA Daily Trend ModelThese were all Daily Signals, with the real confirmation of change held in abeyance, temporarily, by the Weekly Models. As we saw on Thursday-Friday, this too would pass:
DJIA Weekly Trend Model
Of the over 50 symbols I track in the Trend Following Trading Model subscription service, 24 of them generated Weekly Sell Signals (including Buys for inverse ETF's) on Friday's close.
"Toto, I've a feeling we're not in Kansas anymore."