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Market Recap: Show Me the Strength!

  TREND MOMENTUM COMMENT
Long-term 2 of 2 are SELL    
Intermediate 3 of 3 are BUY 5 of 5 are NEUTRAL SPY ST Model in BUY mode; Non-Stop in BUY mode.
Short-term Model is BUY 6 of 6 are NEUTRAL The trend is up but I hold no long position over weekend.
GANN DAY MOON/SOLAR CYCLE CONCLUSION
9/10, 9/21 09/08 / 09/08 9/5, 9/6 Next pivot date: 09/07 - 09/10, 09/21 - 09/23

BULLISH  
BEARISH *0.2.2 Extreme Put Call Ratio Watch: CPCI too high, topped?
*0.2.5 NYSE Total Volume: Volume too low, topped?
6.4.6a QQQQ Black Bar Watch: Black bar, top is close?
*6.4.4 SPY Price Volume Negative Divergence Watch: Price volume negative divergence.

SPY
SETUP
ENTRY
DATE
STOP
LOSS
INSTRUCTION: Mechanic signals, back test is HERE, signals are HERE.
TRADING PLATFORM: SSO/SDS, UPRO/SPXU
Non-Stop 09/07 L N/A  
ST Model      
*Please make sure you understand how to use the table above. The purpose of this report is to provide info so contradictory signals are always presented.


SHORT-TERM: EXPECT PULLBACK SOON

Still expect a short-term pullback at least. I've mentioned enough reasons in 09/09 Market Recap and the Friday's After Bell Quick Summary:

  1. Pivot window around 09/07 to 09/10.
  2. 6.4.6a QQQQ Black Bar Watch, QQQQ black bar.
  3. 0.2.2 Extreme Put Call Ratio Watch, CPCI too high.
  4. 0.2.5 NYSE Total Volume, NYSE total volume too low.
  5. 1.0.0 S&P 500 SPDRs (SPY 60 min), Bearish Rising Wedge as ending pattern plus RSI negative divergence.
  6. 1.0.6 SPY Unfilled Gaps, 16 unfilled gap, too many.
  7. 6.4.4 SPY Price Volume Negative Divergence Watch, price volume negative divergence.

I'm not sure if we'll see one more push up on next Monday though, because 1.0.1 S&P 500 SPDRs (SPY 15 min), looks like an Ascending Triangle in the forming therefore it could have one more push.

S&P500 Ascending Triangle
Larger Image

Besides, if Monday gap down unfilled then we'll have another back to back unfilled gap which is supposed to be filled very soon. So again whether the market starts to pullback on Monday, I have some doubts.

S&P500 Monday Gap Down Open Unfilled

Nothing else new to say. There're 2 updates on the above mentioned top signals, take a look below if interested, they simply make the top of some kind look more real.

0.2.5 NYSE Total Volume, much lower, no good.

NYSE Volume
Larger Image

0.2.2 Extreme Put Call Ratio Watch, CPCI skyrocketed high again, no good too.

S&P500 Extreme Put/Call Ratio


INTERMEDIATE-TERM: TO BE ASSESSED, IT'S NOT AS BULLISH AS I ORIGINALLY THOUGHT

About the intermediate-term, see chart below, the market is not as strong as I originally thought. At least it's not repeating what happened in March and July 2009, instead in terms of strength, it looks a lot like an usual 2 weeks in a row rebound we saw in the past, especially if the market does pullback hard the next week. So, I temporarily hold the forecast of expecting 3 legs up, mini 100 SPX point up from 08/27 close mentioned in 09/03 Market Recap. I need more evidences to assess the intermediate-term trend.

S&P500
Larger Image

About whether 08/27 is the bottom, in 09/03 Market Recap, I mentioned that VIX:VXV is too low therefore I really doubt how far the market could go. Actually, there's another suspect, see chart below, seldom a bottom is flat, so if 08/27 is the bottom, then this bottom must be very very unique. Anyway, I'll put these 2 guys into suspect list, will combine all the other factors I see the next week together to assess the intermediate-term trend.

S&P500
Larger Image


SEASONALITY: SEPTEMBER IS BEARISH, THE TRIPLE WITCHING FRIDAY IS BULLISH

See 09/03 Market Recap for September seasonality.

Also according to Stock Trader's Almanac, the September Triple Witching, Dow up 5 straight and 6 of last 7.


HIGHLIGHTS OF THE OTHER ETFS IN MY PUBLIC CHART LIST

  TREND DTFMS COMMENT - *New update. Click BLUE to see chart if link is not provided.
QQQQ UP   *4.1.1 Nasdaq 100 Index (Weekly): NDX to SPX ratio too high.
IWM *UP   *2 black bars in a row, pullback?
CHINA UP   Head and Shoulders Bottom in the forming?
EMERGING UP   4.1.6 iShares MSCI Emerging Markets (EEM Weekly): EEM to SPX ratio too high.
EUROPEAN UP *BUY *2 reversal like bars in a row, doesn't look good.
CANADA *UP   *TOADV MA(10) too high, may pullback further.
BOND DOWN *SELL 4.2.0 20 Year Treasury Bond Fund iShares (TLT Weekly): Too far away from MA(200).
*3.0.0 20 Year Treasury Bond Fund iShares (TLT Daily): pullback to trend line support, rebound?
EURO *LA    
GOLD DOWN SELL  
GDX DOWN SELL *4.3.1 Market Vectors Gold Miners (GDX Weekly): GDX to SPX ratio too high and Bearish Engulfing.
OIL *UP *BUY  
ENERGY *UP *BUY  
FINANCIALS UP   4.4.2 Financials Select Sector SPDR (XLF Weekly): Head and Shoulders Top in the forming?
*3.4.0 Financials Select Sector SPDR (XLF Daily): 2 reversal like bars, doesn't look good.
REITS *LA   4.4.3 Real Estate iShares (IYR Weekly): Home builder is lagging and IYR to SPX ratio too high.
MATERIALS *UP    
*DTFMS = Dual Time Frame Momentum Strategy. The signal is given when both weekly and daily STO have the same buy/sell signals. Use it as a filter, don't trade directly.
*LA = Lateral Trend.

 

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