It was pointed out to me yesterday that NYMO had not actually hit its 28 day trading average. And after looking at it again this morning, I had to agree. But right now we're within a whisker of hitting it, and yesterday's action had game-changer written all over it. And that's why I think it's a waiting game. If there is no rally tomorrow, the sell signal will in fact be confirmed. But as you folks are already aware, we are not in a position to "turn on a dime" the way this market is. I myself have ...
Well, that didn't long. Back to back weakness and a Seven Sentinels sell signal gets triggered. Today's action is being blamed in part on some weak retail sales figures out of China, along with a dip in industrial production in July. Japan reported weak machinery orders issued a moderate economic outlook. But I suspect the real blame is yesterday's FOMC announcement. How long can the market's rallies revolve around what the fed does when economic data continues to ...
One of the difficulties of a trading range is that it smooths out the EMA, making signals dance up and down around it. We've been seeing this play out for the past week. I mention this because the Seven Sentinels are flashing 7 sells signals today. But there's a caveat. If NYMO has not hit its 28 day trading average low at the same time the signals all flash sells, then the system remains on a buy. The idea behind the 28 day trading average was to try and filter out whipsaws. Well, ...
Can you tell it was Monday? The market closed with moderate gains today, and it was on the lowest NYSE volume total of the entire year. But August is known for light volume so I wouldn't make too much of it. While there were no real catalysts to move the market today, tomorrow has the potential to give it a reason to move. The FOMC rate announcement is released tomorrow afternoon. It is currently pegged at 0.25% and the consensus overwhelmingly expects it to remain ...
Sunday Brief, 8 August 2010. Key Fibonacci & Linear Regression Levels over multiple time-frames. Last week was a slow-to-flat week, but considering the news, I'd consider price to still reside in the Bull camp. The 1st chart shows us 3 out of 4 times, prices climbed higher in the early part of the week, then drifted lower. Yet each of these climbs showed a small breakout, so I'm still conservatively encouraged we can (at a minimum) reach 1040 and perhaps higher ...
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