The Rumors Battle - December 9, 2011

[Billy]

Forum Clusters 111209.xlsx

Sellers undeniably won yesterday’s battle between rumors denying other rumors about Europe. For me, locally here in Brussels, being glued to the screen mostly meant missing out the party for the 30 years birthday of loyal services from my concierge and she is so angry at me now! Main Street people here are totally disconnected from the market’s tyranny and the euro crisis as the local medias barely ever mention them! Most people in Brussels don’t even know we have a Summit here and what its importance could be. Having a new Belgian government at last 540 days after the elections is their main worry since everything went so well for the country without the politicians in the driver’s seat!

Leaving surrealism for our robot realism and objectivity, large players clearly shifted their gears from buy to sell yesterday. It was easy to do a lot of damage without any significant floor support level to break. It might be as easy to bounce back without floor resistances either! IWM retraced a 38.2% Fibonacci of the range from 11/25 lows to 12/5 highs which is quite a normal and minimal retracement to be expected in any uptrend. It is back on the super strong floor support cluster that protects our trailing stop (71.02). If that stop is hit, the robot will turn the page on this episode and that’s all we need to know as disciplined robot traders. Monitoring price in relation to VWAP remain the best way to see the programs buy or sell biases intraday. Settings remain neutral for entering a new position.
Billy

[xr-3609]

Billy,

I apologize in advance if I missed this explanation on an earlier post! You typically use Moving VWAP 65 (5 Day), 52 (4 Day), 26 (2 Day); today you are using Moving VWAP 91 - is this to keep "anchored" on 11/29 which is the day before the gap up?

Insight on your choices would be appreciated.

Thanks,

greg

[Billy]

Billy,

I apologize in advance if I missed this explanation on an earlier post! You typically use Moving VWAP 65 (5 Day), 52 (4 Day), 26 (2 Day); today you are using Moving VWAP 91 - is this to keep "anchored" on 11/29 which is the day before the gap up?

Insight on your choices would be appreciated.

Thanks,

greg

Greg,
91 x 30 ùinutes VWAP at the close is actually anchored at the opening gap of 11/30.
But it is now of lesser significance and I will focus on the 5-day (65 x 30 minute) VWAP.
These parameters have no influence on the robot, just helping my analysis.
Billy
Billy