Featured Breadth Chart of the Day:
Movements are getting more volatile now as the Zweig shows us a move to 50%.
Inflation numbers out of Europe and the UK today showing that the deflationary trend appears to be waning. That is good news. In the USA today it will be retail under the microscope.
Quote of the Day:
Some people regard discipline as a chore. For me, it is a kind of order that sets me free to fly.
Comments and Levels for the Front(S&P500 – Emini futures) contract:
While the equity markets believed the tapering fear from Fed Member Lockhart which started the ball rolling into the close, the bonds continued to rally to lower interest rates. Our fall took us exactly to the 2% line and, sure enough, there were buyers there willing to bounce.
The MiM joined in the selling during the last hour of trade snapping a streak of lighter MiM buying. For today we are looking toward 1826 as a possible recovery to see if buyers are willing to bid it up and over. If we do hit turbulence again we want to think about buying long for a reversal in the 1807 area.
On the MiM:
Nice MiM coming in on the downside after which the market was already down big. It is not the kind of trade I would have ever have down pre-MiM, that is a trade joining the downside after such a big move.
For January, I am continuing to do entries at the 3PM timeframe if the MiM so inclines with an obviously strong biased position, in this case both the dollar percentage and symbol percentage less than 66% and the actual dollar size less than $160MM. That means a 3pm entry and a hold to 4pm close. No thinking.
Now that 4pm exit was not the best, and at the end of the month we will have 7 months of MiM data to play with and I will begin adding scaling into my mechanical trading, but for now it is easy entry and exit.
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|Date Of Signal||Direction||x:00 Entry/Close||x:20 Entry/Close||x:30 Entry/Close|
* – NFP Day before and day of.
** – New Year’s Eve / End Of Year
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Interest rates continue to fall and there appears to be no fear in increased tapering. I now have 105.50 as the upside target where perhaps we should see some resistance and a trip back to the 104 area.
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Breadth Charts in Full:
Zweig Breadth Thrust
See featured chart above.
Cumulative Volume Index:
Are the gatherings going to hit the streets today?
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
New Highs / New Lows ratio chart :
Makes you wonder. This did not go down very far for such heavy selling. We did 150 new highs on the NYSE… watch today for the century mark.
Short Term Trender - McClellan Summation Index:
Long Term Trender - Cumulative 4-week Highs – Lows (the fat lady):
Over the weekend I just finished my adventure with Ewan McGregor and Charley Boorman. I feel like we are best pals after riding BMW cruising bikes from the northern tip of Scotland, through Europe and the boot of Italy and then down through Africa to the southern tip.
With a production staff and two support vehicles our adventure was well captured and you quickly learn that although Ewan can be a bit of a whiny boy, that is all offset by enjoying his reaction and interaction to the people and events they confront.
It was a great reminder that despite all the conveniences of home (like sitting on a warm couch watching NetFlix videos streaming over broadband), we still live in a big world that has areas of untouched beauty. Well worth the ride.
Thank you for Reading -
Marlin aka RedlionTrader @redliontrader
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