A Rapid Return to Risk ON Money Flow in our Quad Market Grid

Sep 12, 2017: 2:48 PM CST

As if there were never any doubts, equities surged to new all-time highs this week.

Beneath the stock market’s action, we’re seeing a sudden surge of “Risk-ON” money flow accompany the stock market’s rally.

What does that mean and what’s happening right now?  Let’s find out:

We’re seeing our quick “Quad-Market” or “Intermarket” Money Flow grid.

The top left shows us the S&P 500; top right is Gold; bottom left is Oil; and bottom right is US Treasuries.

The classic “Risk-On” markets of Stocks and Oil (which tend to do well when investors/traders are optimistic/bullish about the near-term future) surged higher this week.

Our two selected “Risk-Off” markets of Gold (which does not always operate as “Risk-Off” and US Treasuries similarly plunged this week, falling from new swing highs.

It’s important to note the broader picture of money flow across markets, even if you only trade one of these markets.

Right now it’s full-bull steam ahead until proven otherwise as the broader trends continue. Continue Reading…

Comments Off on A Rapid Return to Risk ON Money Flow in our Quad Market Grid

Charting SP500 Breadth from Stocks Above Daily MAs Sept 7

Sep 7, 2017: 1:04 PM CST

Like a strong tree rotting on the inside, the S&P 500 breadth currently tells a story of an impressive rally that is deteriorating from within.

What’s the picture and what does it mean for our future short-term trades? Let’s take a peek inside:

SP500 S&P 500 Breadth

We’re seeing the S&P 500 (top) with two measures of Breadth:

The Percentage of Stocks (in the S&P 500) above their 50 day Simple Moving Average

and the % of Stocks above their 200 day all-important Simple Moving Average

When these internal indicators were strong (showing strength above 75%), it suggested broad strength and support of the market, indicating that the near-term future would likely be bullish.

Indeed the future WAS bullish as the S&P 500 continued the strong uptrend, peaking just shy of 2,500.

Internals were slightly weaker (less stocks were trading above their 50 day or 200 day SMA) at the July high which set in motion a cautious play and indeed stock prices did trade lower in a retracement (sell-swing) through August.

As stocks make ANOTHER run-up toward 2,500, internals are not keeping pace. Continue Reading…

Comments Off on Charting SP500 Breadth from Stocks Above Daily MAs Sept 7

Emini Still Trades and Bounces within our Grid Sept 6

Sep 6, 2017: 1:27 PM CST

Our breakout beyond 2,470 was short-lived last week.  Now, we’re back within our grid.

Let’s chart today’s @ES Fibonacci Grid in play:

Emini @ES Intraday Trend Reversal

After the Labor Day holiday, shares plunged back toward our 2,448 Fibonacci Pivot and reversed powerfully up away from this level, closing back at the 2,458 Fibonacci Target.

At the moment, we’re back within the 2,458 and 2,470 price pivots as price rests between them.

There’s no special analysis or plan here – continue to trade the movement between these levels until we get above 2,480 (target 2,500) or beneath 2,420.

Until then, we’ll continue loving this range because it’s effective for our short-term trades.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day. Continue Reading…

Comments Off on Emini Still Trades and Bounces within our Grid Sept 6

General Electric GE Finds Tiny Rounded Reversal Bounce

Sep 1, 2017: 1:10 PM CST

General Electric (GE) is a horrendously downtrending stock but we’re seeing a big counter-trend bounce taking place now off support on positive divergences.

Let’s step inside this price action, paint a target, and plan for the future swing yet to come:

GE Rounded Reversal Bounce

Shares peaked at $33.00 per share last July 2016 and have been strongly downtrending since then.

Price is down 25% from the high in a daily chart downtrend.

For the second time since May 2017, we’re seeing a positive divergence help send shares higher on a bounce off support.

Last time price rallied through the falling 20 day EMA and peaked just above the 50 day EMA before resuming the downtrend in motion.

Aggressive traders can play the bullish swing “up away from” the $24.50 level “toward” the $26.00 target this time in the event we get a similar short-term (counter-trend) bounce outcome.

Other traders can await to short-sell the retracement toward this target, playing for the downtrend to continue into the future.

The bearish downtrend would end with a stabilization at the $24.50 level and multiple closes above the 50 day EMA.

Until then, odds favor trend continuation lower – as trends in motion tend to continue rather than reverse.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day. Continue Reading…

Comments Off on General Electric GE Finds Tiny Rounded Reversal Bounce

Market Slices through Fibonacci Grid like a Hot Knife through Butter

Aug 31, 2017: 11:34 AM CST

Wow, that was fast!  Stocks rebounded like a rocket off our 2,425 Fibonacci Pivot.

Let’s chart today’s @ES Fibonacci Grid in play:

Emini @ES Intraday Trend Reversal

I highlight these levels develop a game-plan for the next trading day for our members.

The prior gap-down (overnight) sent the market back to our 2,425 level and ended the session at our 2,448 “50%” pivot.

The next day (yesterday) took us UP toward our 2,458 pivot where the market closed.

Today we’re seeing a strong gap UP toward our “Final Fib” level of 2,469 at yet another key short-term pivot.

Remain bullish (playing for 2,500) if price remains firmly above 2,470 or else cautious within the Fibonacci Grids if price trades down away from 2,469.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day. Continue Reading…

Comments Off on Market Slices through Fibonacci Grid like a Hot Knife through Butter