RT and EOD Models Back In Sync - April 13, 2012

The IWM robot was stopped out yesterday and will stay in cash because the 20DMF is neutral while no LT/ST edges could be found.

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The GDX robot made a nice progress with its long position and the stop can be trailed up to 45.06. We are comforted by the fact that the Precious Metals Money Flow closed far above the 0% line switching the RT model back to a long position. However, no new secondary position is advised for the moment as edges are neutral.

Both the EOD and RT models are now protected by a cross of 0% - porosity on a daily close basis for the EOD model and on an intraday basis for the RT model. The porosity is 0.150% today. As long as the protection level is not breached, we can hopefully wait for a crossing of the Overbought level (+1.35%) where we will prepare to sell on strength when the MF crosses back below 1.35%.

The first support and resistance clusters are each weak with a strength of 4 and there are about equal chances to see a pullback or a follow-through today. If we head into a range day, some digestive consolidation around weekly pivot (47.65) looks most likely because that’s where the daily pivot (47.66) resides also.
Billy

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