Tuesday’s close re-affirmed the long side for the long haul with an even stronger crossing above the 20 DMA of the index. We should get a test so over the next few days our index should stay above the 20 DMA even during the test. If we get a crossing back below then caution...
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The Zweig Breadth Indicator (ZBI) finally made it to oversold. We had a rare thrust watch a couple of weeks ago but it needed to make it from oversold to overbought in 10 days and it got a little lost along the way but it finally made it there taking 14 trading days to...
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We got our first warning shot since this latest run began. The 52 week new highs was unable to put in higher dailies on Tuesday’s close despite higher prices. This is a bearish divergence and could be warning of a few days of softness ahead.
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![ES_F scalp using a Linear Regression Channel [video 5min]](http://www.redliontrader.com/wp-content/uploads/2010/06/image_thumb56.png)
This is a video from an ES_F scalp from Tuesday morning, June 15th. My channel is setup as a 23 period and on a 3 minute chart. I enter long when we move from the lower standard deviation to the upper (opposite for a short) and use the NYSE ticks to confirm the entry....
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The breadth charts put in a +18 bullish score but the market action put in a bearish tone into the close. First let me remind everyone this is OPEX in a very skittish market. The 52 week new highs and the 10 day highs minus lows both peaked intraday but still the 40 DMA...
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The 52 week new highs stayed in the bullish camp putting in a +6 score of the market action on Monday. Both the Dailies and the 5 day momentum indicator remain in an upward trend.
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.. April 26th. We now have all three indexes above their 20 DMA, the first time since April. The Monday selloff was not strong enough to keep the indexes from crossing which is a nice divergence and a pretty good tell that more upward market action is expected. I was anxious to see this...
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The 10 day highs minus lows on Monday’s close put in a full +6 full bullish mode score now that both the dailies and the momentum indicators continue to build. The long side is the higher probability trade now despite Monday’s afternoon market action shakeout. Tuesday has some work to do to keep from...
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First let me explain rule #1.. “Don’t loose money”. Although this seem obvious it is sometimes overlooked by the “need and greed” of wanting to make money but I have a lot to say about this issue and that is not what this post is about. Rule #2 Do not trade alone. As anti-social...
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Gap up this morning as the news now turns from negative momentum to positive and the talking heads all begin covering strong recovery stories. Our breadth charts have down a good job monitoring the change in positive breadth with the 10 day high low and 52 week new highs on full bull alerts with...
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