The State of the Trend

By: George Krum | Sun, Dec 1, 2013
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The major indices didn't disappoint and finished one of the strongest (from a seasonal point of view) weeks on a positive note. For the record, this is what the rest of the year looks like for the weekly SPX:

SPX table
Chart courtesy of OT Seasonal

The trend for the averages in all three time frames (daily, weekly and monthly) remains up, and this rally continues matching the 2011 QE script point for point. Bullish sentiment, however, is stalling and VIX is flashing a warning signal:

Weekly Bulls versus VIX Chart

Notwithstanding that another Fed-released taper trial balloon could precipitate a sell-off at any time, just like happened last August and September, a drop below daily channel support will signal the beginning of a sideways/down move:

SPX Daily Chart
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Gold and silver continue to be the worst performing industry groups in 2013, and remain trapped in multiple downsloping channels:

Gold Weekly Chart
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Silver Weekly Chart
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George Krum

Author: George Krum

George Krum

George Krum is the author of the "CIT Dates" blog, and the following apps:

OddsTrader - combines the power of Hurst Channels with proper risk and position size management. For a web version see OT Signals below.

Gann 9 - the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world, and to build long-term forecasts and models.

OT Pairs - pairs trading, one of the most successful hedge fund trading strategies, is now available on your smart phone.

OT Pivots - combines the power of pivot lines with cycles to provide you with concise technical analysis and powerful trading signals.

OT Signals - a web app accessible from any browser, tablet or pc. It gives buy/sell/hold ratings for any instrument from around the world, and defines the trend and support/resistance levels.

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