Some Pocket Pivots

I am in cash at the moment but paying attention to pockets of strength.

Gold is showing strength, GLD is on track to form a pocket pivot today along with cousin instruments DGP, DGC, UGL.

These leading stocks may show pocket pivots at the end of day:
CMG, NFLX, SINA, FRX, SWN, HAL, VRX, BHI.

TZA, RWM, TWM, SRTY, RTSA (small cap inverse ETFs) are also showing pocket pivot action.

Pocket Pivots as defined by Chris Kacher (Dr. K) are when a stock bounces off of or trades up through the 10-day or 50-day moving average with volume greater than the largest down volume over the prior 10 trading days.

I see GLD must clear about 14 million shares; it has so far traded 9.1 million.

[QUOTE=nickola.pazderic;12997]I see GLD must clear about 14 million shares; it has so far traded 9.1 million.[/QUOTE]

My predicted end of day volume on GLD is 15.4M. I run a real-time end-of-day estimator for all stocks in my eSignal watch lists. I essentially took a series of days of recent intra-day volume profiles for the NASDAQ and averaged the profiles and fit a 6th order polynomial to it. I then use that polynomial to extrapolate volume of individual stocks and compare to the largest down volume over the last ten days. This computation then flags the predicted pocket pivots. Intraday volume profile of an individual stock can of course be different than the profile of an index but in practice it works pretty well.

I know Morales uses esignal. I have TOS, and they specialize in options trading generally speaking. I'm not sure I have such a powerful tool on the platiform. (If anybody who uses TOS knows better than I, please let me know.) In any case, I appreciate the heads up very much.

[QUOTE=mscott;12995]Pocket Pivots as defined by Chris Kacher (Dr. K) are when a stock bounces off of or trades up through the 10-day or 50-day moving average with volume greater than the largest down volume over the prior 10 trading days.[/QUOTE]
I will not pretend to be an expert In PP but isn't there supposed to be some sort of base to increase the validity of a PP? Do you see a base here?

The May 20th Pocket Pivot looked great to me because of the previous base building.

[QUOTE=Pierre Brodeur;13006]I will not pretend to be an expert In PP but isn't there supposed to be some sort of base to increase the validity of a PP? Do you see a base here?

The May 20th Pocket Pivot looked great to me because of the previous base building.[/QUOTE]

No base requirement required. There are continuation PPs as well as pullback PPs.
Mike Scott
Tarzana, CA