Updated Charts for February 10, 2012

It is still hard to find significant edges for good risk-reward setups in any direction.

Futures on IWM have just undercut yesterday’s lows and a gap down looks very likely today. We are only interested in large players reaction to the early weakness. Will they continue to bid with liquidity tailwinds or will they finally turn defensive against some worrying headwinds? It is on such days that the RT 20 DMF monitoring can help.

The GDX robot is 0.95 day away from a short signal that will be avoided due to low volatility. A buy signal is now 5.91 days away and could only trigger near options expiration next week.
Billy


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Please note that the indication of a buy signal 6 days away from now is only valid because the GDX MF is above zero %. Then it will buy an oversold condition that could develop within the next 6 days.
But if ever the GDX MF crosses below zero% and bounces back above zero%, the robot will have another buying option and might not wait for an oversold condition for buying and this could happen much sooner.
Billy