| Trend | Momentum | Comments - Sample for using the trend table. Warning: This is NOT a trading recommendation! | |
| Long-term | Down | Idea for trading intermediate-term under primary down trend. | |
| Intermediate | Up | Overbought | Hold long. |
| Short-term | Up | Neutral |
| Report Focused On | Buyable dip or the market topped? |
| Today’s Summary | Market still easily goes to overbought. Pay attention to CPC. |
Some overbought indicators have been corrected by the pullback today, however they may easily get overbought again if the the market goes up again tomorrow because the correction is not big enough. My suggestion is to pay attention to 2.8.1 CBOE Options Total Put/Call Ratio. Should the market goes up and CPC does not dive below 0.8 but rises instead, be cautious. In other words, I believe the CPC is not a contrarian indicator and it leads the market. Now let’s review the overbought conditions of the market.
0.0.2 SPY Short-term Trading Signals. NYADV is overbought, TICK and NYMO are close to overbought although they have been corrected a bit.
1.1.4 Nasdaq 100 Index Intermediate-term Trading Signals. Both STO and ChiOsc are too high, so is the NDXA50R at the bottom (I have been repeating this over and over again…).
1.0.2 S&P 500 SPDRs (SPY 60 min). The obvious negative divergence on RSI and MACD can only be resolved by a big rally, otherwise there will be a pullback.
Cobra,
ReplyDeleteYour technical analysis is awesome! In my perspective, if you add market events analysis, your report can be ealiy commercialized and your hard work will be rewarded
He's right.
ReplyDeletePlease just don't charge too much.
I don't have so much money.
Thanks, guys, but my first step is to try my best not to let someone say how could I ever be so wrong. To provide paid service is even more difficult than that. I just saw a complain in sentimentrader.com where a guy said if Jason could be more aggressive in his wording he wouldn't have missed the rally. Actually I don't think sentimentrader.com provides trading signals, in stead it provides lots of indicators and I believe that subscribers themselves have to make the trading decisions. But even so, Jason the owner of the sentimentrader.com gets blamed. Boy, that's really tough. Nobody can be 100% correct.
ReplyDeleteWell, Jason has been a bit too bearish though. Prediction is tough in this environment. Such as Mike M came say sell banks, it breaks technical that was heading to 850, then they bought up M. Whitney said banks should not sell, broke the technical that was heading to 810. Only real time comments can help catch up that!
ReplyDeleteThank you Cobra!
ReplyDeleteThanks for the analyses and insights.
ReplyDeleteStrange, how this stuff seems to be more fun if you're not doing it for the money...;)
Bought little more of SDS and FAZ at the close yesterday and sitting well with them so far this AM.
ReplyDelete