Thursday, March 12, 2009

03/12/2009 Market Recap: Very short-term overbought

The market is overbought very short-term, so it may pull back at least tomorrow morning.  Short-term, 0.0.4 SPX:CPCE, still "firework-ing", just pay attention to the NYADV at bottom, very close to overbought now.  Since CPC is lower than 0.8 today, so according to 7.0.4 Extreme CPC Readings Watch, 68% chances tomorrow may close in green.

SPXvxCPCE

 

0.0.0 Signal Watch and Daily Highlights.  Here is the overview of all signals, extremely overbought in very short-term.  Well, the most accurate NYADV and NYMO are not overbought yet, so I guess the market still could go up further in the short-term.

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Let's "feel" a little bit about how overbought the market is.

0.0.2 SPY Short-term Trading Signals

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1.1.3 QQQQ Short-term Trading Signals.  STO is extremely high.

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1.0.3 S&P 500 SPDRs (SPY 30 min)

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1.1.6 PowerShares QQQ Trust (QQQQ 15 min).  This bearish rising wedge looks so obvious, and also be cautious on the negative divergence on ChiOsc.

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2.0.0 Volatility Index (Daily).  Previously VIX always makes a U-turn when the STO is at the current level, RSI oversold, MA10 ENV oversold and multiple support, therefore VIX may bounce back up.  This is no good for the stock market.

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15 comments:

  1. That firework prediction [few days ago] was very professional!

    Roxy

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  2. Cobra: Do you think we will re-test 666 SPX or would you lean towards a new uptrend here for a few months.

    Thanks!

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  3. I kind of liked my prediction of the stealth bottom.

    there is a wedge but ... Volume. All patterns need volume confirmation.

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  4. A retest is still possible. We'll soon know if the market goes up for a month or two first or retest first. Bottom line, a retest is very common for a bottom so eventually there'll be a retest.

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  5. Best blog!!! I've been here since post #1..!

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  6. I read and visit a lot but rarely post. I really enjoy your work. I agree with the pullback and run up. Thanks.

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  7. regarding CPC <0.8 close in green the next day, "3rd time is different"

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  8. That CPC chart is an awesome indicator!

    However...

    If you remove the times where it only *touches* the chart, it improves the usefulness quite a bit IMO.

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  9. Volume on major averages seems to confirm this rally has legs...

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  10. Cobra,
    Does your equal days up and down rule apply to longer time frames than 2-3 days?

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  11. Cobra
    Your analysis is great, you always support your predictions on facts and you always talk about probable outcomes which is very real and sincere of you.
    Congrats and thank!

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  12. Hi, mark, I never tried on longer time frames, so don't know. It's actually a very basical dow thory "lower low, higher higher etc", just I add time into it. Occassionally it doesn't work. Just very occassionally.

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  13. Hi, Dave, what do you mean "touches" the chart? Thanks.

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  14. What Gas says is to the point. Cobra's attitude makes his analysis significant.

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