Objectively - February, 2012

[B]“When markets speak, it is our job to listen objectively, but the markets rarely speak clearly.” [/B]Brian Shannon – Alphatrends.com

Objectively, it was an impressive outperformance of IWM Wednesday within a resilient strong uptrend. But the buyers were not large players as the 20 DMF finished weak and in the red for the day. I know “only price pays”, but for how long when such an extended move is only supported by small players?

After a trend day like yesterday, the usual following day is a range day digesting the gains. By my definition, a range day is bounded by daily R1 (81.26) to the upside and daily S1 (79.83) to the downside. With our stop at 81.27, it only has a low probability of being hit today. If it is the case, the robot will stay in cash overnight. The suggested secondary entry at 81.24 is only for discretionary trades.

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Please read Pascal’s comment for closing the GDX trade at the open today.
Billy

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