Forum Clusters 111221.xlsx
It was a turnaround Tuesday with large players buying from start to finish. The 20 DMF was 190% stronger than average and the rolling 4-day RT window isn’t showing any negative or positive divergence anymore.
Clearly something has changed in the mood of the market which stopped its pattern of intraday distribution. But statistically both the 20DMF and the IWM robot are pointing to further improving edges on the sell/short side. I prefer not to put much weight on multi-pivot analysis during holidays season. We have repeatedly witnessed aberrations in all past holiday weeks, including last summer. For unknown reasons, market makers seem to turn neutral and ignore floor levels during such periods. Trading becomes more amateurish, emotional and chaotic.
The limit for a new short entry at 75.27 is above the robot’s stop at 74.80. However, If the robot get stopped out, it will not re-enter a new position on the same day and will stay in cash overnight. The new entry suggestion is for discretionary trades only.
There is still no new advised position in GDX.
Billy
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