A Day For Nothing – November 25, 2011

[ATTACH]11582[/ATTACH]

The market will only be open for 3 ½ hours and the 20 DMF has switched to neutral. This is due to the fail-safe safeguard when the market has as much probability for an imminent bounce as for an imminent crash. It is impossible to predict objectively which way it will go based on available statistics. This is a day to be in cash and switch off all market medias and noises to protect your mental health.

The percentage of stocks in daily accumulation and mark-up stages is now below 30%, the threshold below which short covering has started in the past. But the indicator needs to close above its 5-day moving average to confirm longer term re-accumulation. With the weekly stages in strong decline, this process could take about 2 or 3 weeks of trading which is in line with the “Number of days before a 20 DMF buy signal” indicator.

[ATTACH=CONFIG]11581[/ATTACH]
[ATTACH=CONFIG]11579[/ATTACH]

On IWM and on a 2-day horizon, there is now a huge floor selling pressure with total strength of (29 +11) 40 crushing the weak (5+11=16) floor buying pressure. A 20 DMF buy signal around yearly S1 (64.40) would be interesting to see since that level was only broken during the October 3rd panic collapse that preceded an impressive reversal on the next day.

[ATTACH=CONFIG]11583[/ATTACH]

GDX is at the yearly pivot equilibrium (55.19) while there is a black cross of the 50-day moving average (58.29) below the 200-day moving average (58.43) in the second resistance cluster. Any bounce is likely to fail at the moving averages.

[ATTACH=CONFIG]11580[/ATTACH]

I will be out this Friday. I am in cash and will not be able to look at the market nor to respond to messages today.
Billy