• 203 days Could Crypto Overtake Traditional Investment?
  • 208 days Americans Still Quitting Jobs At Record Pace
  • 210 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 213 days Is The Dollar Too Strong?
  • 213 days Big Tech Disappoints Investors on Earnings Calls
  • 214 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 216 days China Is Quietly Trying To Distance Itself From Russia
  • 216 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 220 days Crypto Investors Won Big In 2021
  • 220 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 221 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 223 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 224 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 227 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 228 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 228 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 230 days Are NFTs About To Take Over Gaming?
  • 231 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 234 days What’s Causing Inflation In The United States?
  • 235 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Nearly Impossible To Avoid A Sell Signal Early Next Week

When we look at the daily chart of the Sigma Whole Market Index, we got a breakout of the uptrend on Friday. Is it a real breakout or is it a false break? This is the key question.

Sigma Whole Market Index Chart

Nevertheless, when we look at the chart of the Sigma Whole Market Index on a weekly basis, the situation is very different. The market is at the top end of a rising wedge, and this pattern is rather bearish.

Sigma Whole Market Index Weekly Chart

When we look at our indicators, the Sigma Trend Index(STI) surged to '72'. We didn't get a sell signal at this time but it is nearly impossible to avoid it next week. Why? If the market achieves a meaningful decline, the Swing and/or the Power Level will activate the sell signal. At the opposite, if the market continues to surge, the STI will increase above the '80' level and at this level we get an automatic activation of the sell signal (whatever the Swing and the Power Level do). (for more information on our methodology, you can visit our site).

The only way to avoid a sell signal would be to remain flat during the next 3 sessions. It is possible, but we doubt it will happen.

Sigma Short-Term Table

Thanks to the surge in market prices, the ST model updated some stop levels:

SPX Short-Term Table

NDX Short-Term Table

CAC Short-Term Table

DAX Short-Term Table

ESTOXX Short-Term Table

Short Term Trading Book:
- SPX: 1 long at 1691.97
(stop @ 1674, 3pts below the ST model to take into account bid/ask spread)
- NDX: 1 long at 3204.34 (stop @ 3156, 5pts below the ST model to take into account bid/ask spread)
- CAC: 1 long at 4219.62 (stop @ 4155, 5pts below the ST model to take into account bid/ask spread)
- DAX: 1 long at 8717.86 (stop @ 8452, 10pts below ST model to take into account bid/ask spread)
- EStoxx: 1 long at 2974.95 (stop @ 2896, 5pts below the ST model to take into account bid/ask spread)

Medium Term Trading Book:
- No more medium term position at this stage.


For those of you interested in our trades or in our methodology, you can visit our site. A full description of our ST model and MT model is available on our site. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.


Back to homepage

Leave a comment

Leave a comment