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View Full Version : Comments on the Robots for June 27, 2011



Billy
06-27-2011, 01:10 AM
9021

The market is now very near of issuing a confirmation of the initial leading 20 DMF buy signal within the next few days. This usually coincides with an IBD Follow-through day. In CANSLIM, a FTD is a necessary requirement before a rally may start, but it tells you nothing about the potential success or failure of the rally.

9022

On the other hand, the LT/ST edge combination for the IWM robot is now much weaker than on the initial buy signal on 6/10/2011. New long entries have lower reward-risk profiles but are still to be preferred over short entries.

9018

The IWM multi-pivot outlook is neutral for Monday, with a total resistance/support clusters ratio of 21/22.
The first resistance cluster is very heavy with a weight of 16, but it only starts exactly 1 ATR above Friday’s close at daily R2 (81.35) and new WR1 (81.39). IWM could experience an easy strong day up to + 1.76% before testing the first cluster resistance. The rest of the week will likely be less easy for fast progress. In case of weakness instead, QS1 (79.32) remains the level that should hold as successful support on a day closing basis before the outlook can turn more bearish. QS1 is in confluence with daily S1 (79.35) which should ideally mark the low for the day if large players stay in accumulation mode while the SP-500 is testing its 200-day moving average.

9019

The GDX robot remains too in a very weak buy signal from the LT/ST edges statistics. The multi-pivot outlook for Monday is rather bearish as there is no significant potential support before WS1 (51.22).
The stop (50.70) for the initial long position entered at 53.26 is just above Semester S1 (56.64), the only strong support left below WS1. Billy

9020

adam ali
06-27-2011, 09:26 AM
Billy,

If you don't mind, could you post the same chart for the SPY? Relative to the IWM, this index has been underperforming and I'm curious what its pivot points/clusters are telling us.

Thanks.

Billy
06-27-2011, 10:21 AM
Billy,

If you don't mind, could you post the same chart for the SPY? Relative to the IWM, this index has been underperforming and I'm curious what its pivot points/clusters are telling us.

Thanks.

SPY had a much stronger support cluster (strength of 14) to start the day. That cluster was bounded by the 200 dma.
I see not much floor resistance before MS2 (128.69). Billy

9031

adam ali
06-27-2011, 10:33 AM
Thanks again.