7-16-12 Before the Open comment

I am back from a vacation to Montana and Wyoming visiting some of our National Parks. It looks like I didn't miss much in the market while I was driving over 3,300 miles. Before I left I set emergency stops in the two positions I hold (TDG and N), nothing happened to them. The exposure count dropped to +1 (30% invested) while I was away. The distribution count has increased to 5 on the NASDAQ, one more day of distribution on or before 7-27 would increase the distribution count to 6, a full count as well as give us another sell signal. If distribution is at a full count or greater and the exposure drops to zero the Market Exposure Model will turn the buy switch off. In the mean time the market is in some kind of weak rally making higher highs and higher lows in an uptrending channel. If the NASDAQ forms lows above the 21-day ema or 50-day on an up day we could see a B3 or B6 buy signal or both.

The US dollar near recent highs is a headwind for equities. I note that Pascal mentions the possibility of a small head and shoulders pattern could form. If the NASDAQ runs into resistance and turns down my constructed NASDAQ downside price target is 2775-2779.

Billy posted an interesting link somewhere else about "Planes, Trains and Automobiles" a trading system developed by Wayne Whaley using Price Thrust or Market Internals Thrust. Googling the name and system name will lead to interesting reading. A follow-through day is one kind of market thrust as well as other buy signals in the Exposure Model. I have been using the Eureka (a form of market internals thrust developed by Ian Woodward). Market thrusts tend to occur prior to or at the beginning of a medium to long term market advance. John Bollinger is working on a thrust model assocated with his signature Bollinger band work and leveraging Ian Woodward's work. Wayne Whaley has taken the concept in an interesting direction and is in process of developing a market timing system based on thrust concepts. His concepts could be a good addition to any medium term player.