RedlionTrader

We got mixed signals on ten day high minus lows.. $SPX

redliontrader — Fri, 30 Jul 2010 01:15:00 +0000

Score: –4

Only the NYSE put in higher daily readings, the RUT and Nasdaq just missed. None of the indexes were able to negate the negative momentum so we end up with a score of –4, two on the negative side for the NAZ and RUT and a neutral score for the NYSE.

Video: How to interpret 10 Day Highs minus Lows

Download: StockFinder 5.0 10 DHL code

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40 DMA % Index returns to bullish.. 2 out of 3 $SPX

redliontrader — Fri, 30 Jul 2010 00:31:35 +0000

Score: +4

The 40 DPI for the NYSE and the RUT both put in higher daily values over yesterday. Unlike the new high indicators this indicator is all about the close so there was some gathering strength today.

Video: How to interpret 40 DMA % Index

Download: StockFinder 5.0 – 40 DMA % Index indicator

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52 Week New Highs all over the board today .. $SPX

redliontrader — Thu, 29 Jul 2010 20:21:16 +0000

Score: 0

The markets gave us a zero composite score for the three indexes we watch. The NYSE (TOP) putting in a higher daily but not enough to turn up the momentum line [ scores a 0]. The Nasdaq Composite (middle) put in both a higher daily and was able to push back up the momentum indicator [ scores a +2] and the RUT had both a lower daily and lower momentum [scoring a –2]. The scores combined neutralized the composite score. A mixed bag. Tomorrow Mr. market will let us know if it wants to go higher.

Video: How to interpret 52 Week New Highs

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Can we get out of this range $SPX 1102 –> 1116? [Chart]

redliontrader — Thu, 29 Jul 2010 11:50:50 +0000

Good morning. We are nursing a 6 point SPX gap up this morning @ 7:20 am on what is a test the bulls day. Today by the end of the day we should know what this market is made of. Super bulls or situation normal. I will save the market comments for the charts section. We have a lot of news and earnings to get through before we know exactly how we are going to open today. New claims @ 10:30am.

Quote of the day:
Nothing can so alienate a voter from the political system as backing a winning candidate. – Mark B. Cohen

Chart	Score	Day-1	Change
40 DPI	0	+2	-2
52 WNH	-4	0	-4
10 DHL	-2	0	-2
Total	-6	+2	-8

We lost breadth on all fronts and slid into the bear’s den with a consolidated –6 score. I am going to give the bulls one more day to make new highs and restore the bullish score.

$SPX chart:

This is our SPX chart from the 7/20 pivot reversal where we made it up to 1120 on 7/27 and have spent the last two days consolidating that run. I had set the trading range for the thrust consolidation at 1116 to 1102 and so far the price action has behaved. I added an 1108 line this morning to act as intraday resistance/support. We can use that line to judge a gap open on whether it is going to break to lows or not.

Based on my studies of the thrust/breadth data I would expect some correction to the upside from yesterdays’ selloff. We should test that 1116 area today and even possibly break out to new highs above 1120. The bulls need to move the ball along to have our thrusting signals (9:1 volume days and Zweig Breadth signals) validated. A pullback from here and we would have to scale back our expectations which for me right now is that we could rally all the way to 1150 without a pullback more significant than this two day consolidation.

Bear victory today would be a break of 1102 area and bulls a break above 1116 until then we are in neutral.

It is looking slightly bears for the 10 day highs minus lows from Tuesday.. $spx

redliontrader — Thu, 29 Jul 2010 11:15:00 +0000

Score: –2

NYSE moved to the bear-side while the NASDAQ and RUT remained neutral for a second day. It will require higher prints today to restore bullish breadth or a run back up to the recent highs to get us back to neutral. As a note, I have not quantified but briefly looking large drop offs in 10 DHL’s from high spots lik the 56 number on Monday usually give us at least a one day bounce to the upside.

Video: How to interpret 10 Day Highs minus Lows

Download: StockFinder 5.0 10 DHL code

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40 DMA % Index is waiting to see what happens.. neutral.. $SPX [chart]

redliontrader — Thu, 29 Jul 2010 10:48:24 +0000

Score: +0

Neutral for the 40 DPI from Tuesday as all three indexes have started to curl back toward the trigger line. There is still room for a couple of more days of weakness before this signal would turn fully bullish. Any type of up day as is expected on Wednesday will restore the bullish score.

Video: How to interpret 40 DMA % Index

Download: StockFinder 5.0 – 40 DMA % Index indicator

Follow me: @redliontrader

52 Week new highs turn bearish from neutral .. $SPX

redliontrader — Wed, 28 Jul 2010 20:30:55 +0000

Score: -4

The balance of the new highs tipped toward the bear side today as the momentum stalled in 52 week new highs. Nasdaq held onto it neutral score. I expected a 0 score so –4 is more bearish than my expectations. I will post as the other breadth data comes in.

Video: How to interpret 52 Week New Highs

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Market is winding back up for another assualt.. $spx

redliontrader — Wed, 28 Jul 2010 11:14:22 +0000

Good morning.

A little sideways action is the way that strong bull markets correct. We are coming into the close of the month midst earnings season which is seasonally strong for the rest of the week. Europe gapped open strongly but was not able to hold the gap and has fallen off since the open taking what had been a 5 point ES up night down to minus 2 points. We have some more historical data coming out at 8:30 am this morning, durable goods, that could help set us in the right direction.

I continue to hold long here anticipating perhaps a 1 or 2% drawdown from here before heading higher.

Quote of the day:
I have learned to use the word ‘impossible’ with the greatest caution. – Wernher von Braun

Chart	Score	Day-1	Change
40 DPI	+2	+6	-4
52 WNH	+0	+6	-6
10 DHL	+0	+6	-6
Total	+2	+18	-16

We lost a lot of breadth on Tuesday but we did cling to a +2 bullish score. The charts were not devastated they just all missed by a smidge for bullish scores.

$SPX chart:

Tuesday the markets coiled into a wedge getting ready for the next break out. The 1116 area we drew turned out to be the upper limit for the day. The gap opening had us scared for a little while but we quickly dropped down into the targeted trading zone [ a great fade if you played it ]. That zone continues today between 1108 and 1116. We really won’t have a break until we clear 1120. A pullback to the 1102 area is still very possible and I will be buying if we were to get there. I have no idea if we will breakout to the upside today or downside but I have my wedge drawn on my charts and the break will let me know.

10 day highs minus lows move to neutral on and NR7 day.. $SPX [chart]

redliontrader — Wed, 28 Jul 2010 01:31:00 +0000

Score: +0

The weakness today (rather small weakness) was enough to get our 10 DHL to neutral with lower daily bars but still rising momentum.

Video: How to interpret 10 Day Highs minus Lows

Download: StockFinder 5.0 10 DHL code

Follow me on twitter: @redliontrader

40 DMA % index keeps a +2 score thanks to Nasdaq $SPX .. [Chart]

redliontrader — Wed, 28 Jul 2010 01:00:00 +0000

Score: +2

The NYSE and RUT rolled a little today at the close but Nasdaq actually put in a stronger day and kept the score from turning to neutral. A little weakness here is good as the move was boarding on violent. Now it has softened a little.

Video: How to interpret 40 DMA % Index

Download: StockFinder 5.0 – 40 DMA % Index indicator

Follow me: @redliontrader