IWM Sandwich and GDX Sparkle - June 19,2012

IWM’s high yesterday was 1 cent short of hitting the stop (77.61), so the IWM robot is holding its initial short position. He is still not advising any new position due to neutral settings.

IWM is now sandwiched between a rising 200-day moving average (75.93) and a declining 50-day moving average (78.13), both of them being less than 1 ATR away from Monday’s close. This situation can only increase the chances of chopping around. However, the multi-pivot clusters are in favor of support at the 200 dma in confluence with Quarterly S1 (75.90).

The IWM correlation score with IBD ratings rose again yesterday but the daily stages correlation score still needs to confirm a cross above its 20 dma. Too many stocks fell back into a strong decline stage.The IWM ETF itself entered into the early accumulation stage yesterday out of the weakening decline stage. The VIX dropped below its 50 dma, a move that often signaled the start of previous rallies.

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GDX is now in its first day of strong mark-up stage out of late accumulation. Since it is happening after a consolidation that gave all opportunities to break down, some upside momentum can be expected in the short term. The massive second support cluster with a strength of 29 really proved its power and it should be able to resist to pullbacks from current price level.

The GDX robot is advising a new short position at a limit of 48.30, a level where there is not much resistance above and very light position-size is well recommended by multi-pivot analysis.
Billy

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