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View Full Version : Back To The Starting Block – November 17, 2011



Billy
11-17-2011, 06:05 AM
11454

IWM closed near the robot’s initial entry and therefore is back to the extremely strong floor support ranging from Semester S2 (72.33) to Monthly pivot (70.36). This cluster is more than 5 times stronger (strength = 27) than the first resistance cluster (strength =5) which only includes weekly pivot (73.88) as a significant level.

The multi-pivot methodology is based on a purely news-neutral environment and of course a decisive breakdown below such a powerful support that includes the yearly (71.84) and quarterly (71.25) pivots would really mean that supposedly discounted catastrophic macro events have been widely underestimated by the market. This would offer an extraordinary opportunity for shorting and I am confident it would be confirmed by the 20 DMF and the robot.

But we are not there yet. However uncomfortable the choppiness can be , the odds and reward-risk setup remain objectively tilted to the long side. Here’s another chance to buy the lower band of the recent trading range. Today will be another important POMO day and the same intraday pattern as the one experienced on Tuesday can be expected with an upside reversal around noon after early weakness. Note that next week’s Tuesday will be the date in November with the largest cumulative Fed liquidity injections operations.

Normally, lower volatility is indicative of rising bullishness from institutional players. Volatility as measured by ATR is diminishing slowly day after day for IWM and fast for GDX which saw a serious tightening of the ranges of its clusters today. But the GDX robot still remains neutral.
Billy

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sesorensen
11-17-2011, 06:35 AM
Billy - I've tried to access info on the forthcoming days/weeks for POMO injections via the NY Fed Reserve Bank website - however without success. Where can I get that info? Thanks. Sorensen

Billy
11-17-2011, 06:56 AM
Billy - I've tried to access info on the forthcoming days/weeks for POMO injections via the NY Fed Reserve Bank website - however without success. Where can I get that info? Thanks. Sorensen

Here it is:
http://www.newyorkfed.org/markets/tot_operation_schedule.html

adam ali
11-17-2011, 07:39 AM
It would be interesting to hear if anyone on the board has done (or knows of) a study of POMO operations and their correlation to daily price movement in the market. Bob may have a thought on this.

nickola.pazderic
11-17-2011, 01:23 PM
11464

We've bounced off YPP twice. I hope the valiant robotic traders will receive reward for their fortitude and patience.

Or, should we panic and quit, as the most prudent course?

Billy
11-17-2011, 01:35 PM
11464

We've bounced off YPP twice. I hope the valiant robotic traders will receive reward for their fortitude and patience.

Or, should we panic and quit, as the most prudent course?

Nickola, please read Pascal's intraday comment
Billy
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nickola.pazderic
11-17-2011, 01:47 PM
This morning was the only that I can remember where I fell asleep after getting my daughter to school. I awoke to a nightmare.