07/27/2010 Market Recap: Key Day Tomorrow

TREND MOMENTUM COMMENT Long-term 1 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 3 of 5 are OVERBOUGHT Long on 07/23, hold partial overnight. GANN DAY MOON/SOLAR CYCLE CONCLUSION 07/27 07/25 / 07/23 07/26, 07/31, 08/02 Next pivot date: 07/26 – 08/03

BULLISH BEARISH 0.2.3 NYSE McClellan Oscillator: Overbought. T2122 overbought.

SPY SETUP ENTRY DATE STOP LOSS INSTRUCTION: Mechanic signals, back test is HERE, signals are HERE. TRADING PLATFORM: SSO/SDS, UPRO/SPXU Non-Stop 07/15 L N/A Be sure to check 8.2.2a to 8.2.2g to understand the risks. ST Model 07/20 L Breakeven

*Please make sure you understand how to use the table above. The main purpose of this report is to provide information so contradictory signals are always presented.

SEASONALITY: THE LAST TRADING WEEK OF RECENT MONTH WAS GENERALLY BEARISH

See 07/23 Market Recap for more details.

INTERMEDIATE-TERM: KEY WEEK THIS WEEK

Key week this week, as multiple pivot dates are due until 08/03. The market may turn down on any of those pivot dates to at least test the 07/01 low. However if the market simply keeps rising during this time window, then most likely the same March 2010 mad cow is back. See 07/23 Market Recap for more details.

SHORT-TERM: KEY DAY TOMORROW

Not much to say today, see chart below, if up big tomorrow then mad cow ahead, if Doji or red day tomorrow, then the pullback has already started. As whether the pullback is the start of a 2nd leg down or just a short-term pullback will have to see the strength of the pullback. So let’s wait for tomorrow.

 

The chart below shows all the Bearish Reversal Days since the March 2009 bull market. Looks to me, there’s never 2 failed Bearish Reversal Days in a row, so be careful.

 

HIGHLIGHTS OF THE OTHER ETFS IN MY PUBLIC CHART LIST

	TREND	COMMENT – *New update. Click BLUE to see chart if link is not provided.
QQQQ	UP	4.1.1 Nasdaq 100 Index (Weekly): Bearish 1-2-3 formation, target 1565.
IWM	UP
CHINA	UP
EMERGING	UP	4.1.6 iShares MSCI Emerging Markets (EEM Weekly): Bear Flag?; EEM:$SPX too high.
EUROPEAN	UP	4.1.7 Vanguard European VIPERs (VGK Weekly): Bearish 1-2-3 formation, target $35.45; Bear Flag?
CANADA	DOWN	4.1.5 iShares CDN S&P/TSX 60 Index Fund (XIU.TO Weekly): Bearish 1-2-3 formation, target $15.30.
BOND	UP
EURO	UP
GOLD	DOWN	4.3.0 Gold Trust Shares (GLD Weekly): Head and Shoulders Bottom, target $129.99.
GDX	DOWN
OIL	UP	4.4.0 United States Oil Fund, LP (USO Weekly): Bear Flag?
ENERGY	UP	4.4.1 Energy Select Sector SPDR (XLE Weekly): Bearish 1-2-3 formation, target $43.14.
FINANCIALS	DOWN
REITS	UP
MATERIALS	UP