I am re establishing the BOT short signal right now at 1266 on the sp500. There are a number of reasons for this and I will go over them later today. I feel it is worth it to try the short signal again now given how far we are up in the clouds in terms … Read more
The XLF ETF has been showing a good amount of strength recently but has still so far been lagging behind the sp500 in terms of exceeding the April 2010 highs. The XLF returning to the April 2010 highs could be a good guidepost for the next ‘more involved’ stock market correction. If and when the … Read more
It appears as though the sp500 is going to close above the high of Monday of this week today. I see no point in switching back to a long signal at this point and therefore neutral seems more appropriate. My take is that the 1300 range on the sp500 is going to be the next … Read more
ARMH has been the ‘poster child’ stock in terms of momentum and strong persistent trend. ARM holding has benefitted from their low power consumption microprocessors and the booming sales of iphones and other hand held devices. Not to mention their strong order backlog. I recall hearing about another stock with a very strong order back … Read more
Technical analysts like to see clean price action with confirmed volume breakouts and dramatic volume shrinkage on price declines. They also like to see clean reluctant retests and clear tradable voids above. This is what they like to see, but often it can be very hard to spot such perfection. Many times one will see … Read more
There exists a possible buy trigger in the UNG ETF at 6.40 or higher. Natural gas futures have a nice 1 year consolidation pattern on the longer term chart and the recent multi week up move initiated itself after a very convincing looking monthly reversal hammer. I think it is possible that the mega bear … Read more
I am trying the BOT Short Signal as of 1266 on the sp500. In my previous post I talked about the need for some type of bottoming tail on a multitude of time frames. We may start to create that bottoming tail by sometime this week. Caution is advised on the long side for now. … Read more
The sp500 today showed a strong performance and was able to hold a good portion of the day’s gains. Today’s move higher in the sp500 and the Dow Transports seems to vindicate the idea that the previous multi week sideways trading was simply a consolidation that served to work off over bought levels. The Dow … Read more
After looking at the NYSE summation index today I am starting to wonder how wise it is to start shorting this market next week. The NYSE summation index is showing the 5 day moving average crossing above the 10 day moving average and we also see the Relative strength index of the summation index crossing … Read more
The Dow Jones Transportation Average is a great example of the type of market we are dealing with now. We are certainly not dealing with a volatile trading range type market. Quite the opposite. We have a market that is trending higher in persistent trend fashion and relieving overbought conditions by going sideways. Looking carefully … Read more