Robots For April 12, 2012

[Billy]

The IWM robot entered a short trade at the open price of 79.01 with an initial stop at 80.79.
The stop is well protected by the first resistance cluster including Quarterly pivot (80.28).
The LT/ST edges are back to neutral, preventing us to advise a secondary entry setup for today. The 20 DMF recovered less than 5% of its Tuesday’s decline diverging negatively with price and suggesting that this is only a failure-prone bounce. Using the robot’s initial stop of 80.79 may offer attractive reward-risk discretionary short entries into strength today at or above the declining 5-day VWAP (now at 80.14).



The GDX robot entered a long position at the open price of 47.16 with an initial stop at 44.15. This worst-case stop is located under the two very strong support clusters. The position is further protected by the Precious Metals MF model if it closes the day below average – porosity.

The robot found sufficient edges for advising a secondary long entry today at a limit of 46.22.

The porosity for today is 0.128%.
The RT model has reversed back to a short position yesterday. It will reverse to long if:

- it hits 0% + porosity intraday
- or hits average – porosity and thereafter rebounds above average + porosity
- or hits the oversold level at – 1.45%
Billy