Forum Clusters 111007.xlsx
“It may not be until early next week that a selloff emerges. Historically, back-to-back gains of 0.5%+ for the S&P prior to the jobs report release has led to further upside or limited downside on the day of the release, with 14 out of 18 occurrences since 1994 leading to a higher S&P close and no losses greater than 1%…” Rennie Yang, Markettells.com
The IWM position is progressing smoothly, finding continuous support at the intraday VWAP. This is a hint of institutional accumulation with confidence in an uptrend. The strong 20 DMF and cumulative TICK are further confirmations that both HFT and large players programs are switched on the buy side. The trailing stop was raised to 61.89.
Today’s signal for a new entry is neutral, and suggests some short-term overbought condition. A strong employment report today could easily lead price to test the 50-day moving average (69.37). If it happens with high volume, IBD will declare the market out of correction and back in uptrend. The extremely heavy floor selling pressure from the second resistance cluster (70.79 to 72.86) will most likely put the brakes on this leg up. The ability of the 50-day moving average to hold as support below that cluster will be key for a sustained rally.
The GDX robot is still waiting in cash.
I am far behind with my emails and private massages, if you've sent me a mail recently, please be patient as I'll catch up today and this weekend.
Billy
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