Uninspiring – December 19, 2011

[Billy]

Forum Clusters 111219.xlsx

The 20DMF was neutral on opex Friday and large players repeated their pattern of selling intraday strength.

IWM is whipsawing among weekly, monthly, quarterly and yearly equilibrium pivots while testing the 50-day moving average. It is hard to draw any trend-following conclusions from multi-pivot analysis under such circumstances and we must fully rely on the 20DMF and robot’s ST/LT edges which are for shorting the market. The ratios of support and resistance clusters strengths are rather bullish with a total floor support about twice more powerful than resistance. But it is all happening within 1 ATR range and one single bad day could quickly change the picture.
I expect quieter trading heading into year’s end and mostly sideways choppiness again, so I only took half my usual position size in TZA last Friday.
There is no new advised position in GDX today.
Billy

[nickola.pazderic]

Hi Billy and all,

I wonder: Has anyone had a look at this from Market Anthropology? I've taken an interest in his work. He appears to be a very disciplined and successful trader if his posts are to believed. Moreover, he charges zero to follow along.

I know there were some comments when I posted a link previously, and they were not favorable. But my brain leaks like a sieve; so apologies for my forgetfulness.

Be well,

[nickola.pazderic]

I believe some traders would have liked to have made a reversion to the mean trade after GDX held for 4 days along this line. Perhaps they got stopped out. In any event, a very sudden movement in both GDX and IWM.

[EB]

I believe some traders would have like to make a reversion to the mean trade after GDX held for 4 days along this line. Perhaps they got stopped out. In any, a very sudden movement in both GDX and IWM.

Attachment 11957

Whole market sold off when BAC broke $5. I don't know the exact rules/regs, but I believe mutual funds and other public funds are not allowed to hold issues that trade under $5.