Today’s Economic News:
The UK continues to lead in Europe. Numbers out of China and Japan were lukewarm but that is probably just right.
Quote of the Day:
You have freedom of choice, but not freedom from choice.
Featured Breadth Chart of the Day:
We are working hard to push this Zweig back below 40. We need one more dump day to do that.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
We continue to look for dump day #2. We haven’t exhausted the selling yet so we would expect that this current run off the 1627 area should exhaust between here and the 1654 area. We will watch 1627 for a fail or a possible double bottom which would delay things for a while. The next level down for us would be 1616 and then finally our 1606 area.
We think a break of 1635 will mean it’s lights out.
That gives you our values for the week.
On the MiM:
Take the money and run. This MiM is just below my symbol PCT threshold but it did produce on the down side and it did grow. I did trade this one on Friday and closed early to get out the door and get the weekend started:
redliontrader (08/30/2013 – 15:20:30): I am short 33.25redliontrader (08/30/2013 – 15:43:15): out the door.. taking 29.25.. time to start the weekend
That was a +4 on the ES contract. For those that don’t trade futures, that is a $200/contract profit.
Before I get hate mail about not sticking to my rules (that Sym PCT column did not get above 66%) here is what had me take the trade:
1. I have a bearish bias
2. Unlike the last 2 days, the dollar size grew every 10 minutes
3. The $PCT and Sym PCT both grew weaker every 10 minutes
That gave me enough encouragement to wait for that 3:20pm ET time frame and take a shot.
We should see the market begin to position for the year close now over the next two weeks. It is going to get better and better through the month.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Here is the range we are watching: 111 on the top side and 100 on the south side. Our longer term outlook is a sub-100 on the TLT before the end of the year. We think we are now set up to see that. The 107.88 area should not get topped. If that does happen we are on our way to 111.
>>> Follow us @redliontrader<<<<<
Breadth Charts in Full :
Zweig Breadth Thrust:
Cumulative Volume Index:
We want a waterfall from here.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Ugh, we are getting to bounce area for recovery. We just want that one more day.
New Highs / New Lows ratio chart :
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
DISCLAIMER: The information and data in the following report(s) were obtained from sources considered reliable. Opinions, market data, and recommendations are subject to change at any time. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any commodities or securities. RedlionTrader.com, its officers, directors and its contributors may in the normal course of business, have position(s), which may or may not agree with the opinions expressed in this report. RedlionTrader.com, its officers, and directors are not agents, representatives, or affiliates of the CME Group or any trading entity. Trading Futures, Options, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in these report(s) will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
Hosting and Newsletter service provided by: