Strong Money Flows - February 13, 2012

The IWM robot remains in a fail-safe cash status and the short signals must be avoided.

Friday’s weakness was actually bought by large players with the 20 DMF closing with a strength of 70% for the day. This is supportive of a continuation of the uptrend now that the big gap of February 3 has been filled. Some further consolidation may still develop due to opex week, but the worst I’d expect is a test of Quarterly R1 (80.45) in confluence with Weekly S1 (80.50). A successful support by QR1 would likely imply that the next target for this quarter is Quarterly R2 (87.15), in confluence with Yearly R1 (87.01) and Semester R1 (86.45). This would make complete good sense with the market makers long term inventories scale-in and scale-out levels if they keep confidence in relentless liquidity injections by the Fed.

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The GDX MF also closed strong, but GDX is now back below its 50-day moving average (54.68) and underneath a massive floor resistance cluster up to the dual Yearly/Semester pivots (55.88). A short signal is only 1.2 day away, but the low ATR will still negate short trades if it triggers.
Billy

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