Robots Setups for July 25, 2011

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The 20 DMF keeps rising day after day, but like in a slow-motion movie. The possibility of a short signal on any big sell-off day remains high although declining slightly.

The new secondary entry signal for IWM remains quite neutral and the limit price (83.13) sits right on the new weekly pivot (83.12) and the 5-day VWAP (83.02). In other words, don’t pay more than the average buyer last week.
Technically, any serious pullback has a good chance to be contained to QPP (82.28) thanks to the strong confluence of floor supports underneath. The trailing stop for the initial position (81.56) is conveniently placed just below the second support cluster.

On the upside, the potential retest of YR1 (85.68) looks very easy now that only WR1 (85.23) stands in the way.

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Both QQQ and SPY are successfully holding above their own YR1 (59.02 and 134.26) for two consecutive days, which bodes well for a continuation of the uptrend and a successful breakout above IWM’s own yearly resistance.

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GDX is consolidating in its advance toward a very strong resistance cluster. The most powerful resistance waits at the SR1 and QR1 (62.12). Any sell-off from here will meet weak support after a long run up where profit-taking becomes tempting for many impatient traders. The ST/LT edges are very limited for a new secondary entry at 60.73. The initial robot entry at 53.26 is now up +14.08% and backtesting has shown that the longer time passes by from an initial robot signal, the lower the probabilities of gains on secondary entries. Billy

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