Forum Clusters 111201.xlsx
“Today’s large gap up ruined the opportunity for low risk entries. It is normal to question a patient and disciplined approach when the markets make such a large move and you are not participating. Patience and discipline always reward us in the bigger picture.” Brian Shannon – Alphatrends.net
“The always random QE factor came into play today. If anything, today’s action proves that this market remains a wild, volatile environment where net overall progress is difficult. Where will this latest round of QE take us? I don’t know,but show me a trend somewhere, anywhere, and I’ll play it. What we have now is just the muck and mud of the chop zone”Gil Morales – The Gilmo Report
The first reality is that the 20 DMF was incredibly strong all week long and Wednesday more than ever with a daily strength 239% above average. If Monday’s strength was likely due to the Gold Mafia Sachs insider gang front-running the edge from their monopoly over advising and directing planetary monetary policies, all other large players have now joined the party while the HFTs and cumulative TICK decided to reverse their prior fading attempts.
The second reality is that we are now at the weekly R3 (73.67) which has a high probability (95%) of marking the week’s highs. Hence a consolidation, an imminent pullback or a shake-out of weak hands is likely in the cards.
The third reality is that the robot will not change its buy limit of 73.14 as long as it doesn’t close one day under Semester S2 (72.33). Just underneath, there is massive floor support confluence from WR2 (72.26), MPP (72.00), YPP (71.84) and QPP (71.25) where a quick bounce to the top of the support cluster will be easy to materialize.
The fourth reality is that there is a vacuum of floor resistance up to the 200-day moving average (77.03). All professionals can see this evidence and they will have no motivation for selling such a good reward-risk outlook with the central banks in their back and barring any bad surprise news.
The initial worst-case stop is now at 68.94 far below and the robot will most likely exit a failing long position on a fail-safe 20 DMF signal change or on contradictory robot settings.
In summary, a long position can be entered at the IWM robot’s limit, but what Pascal calls “instability” could force us to be patient before the next big and fast move up.
The Precious Metals sector Money Flow has switched from short to neutral, and the GDX robot stays in cash.
Billy
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Originally Posted by xr-3609
