Today’s Economic News:
Just when we were getting use to striping everything green, today gave us some head-scratching red stripes. We don’t like deflation so we continue to watch the German WPI type numbers with concern.
Quote of the Day:
I haven’t spoken to my mother-in-law for eighteen months—I don’t like to interrupt her.
Featured Breadth Chart of the Day:
Yesterday’s NYSE A/D line was 1:1. That didn’t advance the Zweig even though price managed to garner higher bids. The action sets up a very early and immature bearish divergence.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
**** NOTE SWITCHING TO THE Z or DECEMBER CONTRACT IN TODAY”S REPORT *******
Looking for a double top now and a possible reversal at the 1686 area. Our downside in now 1642 for the intermediate and still clinging to a belief that we need to see 1600. For today the range is 1686 x 1672 and looking for any sign of weakness and really not seeing anything around.
On the MiM:
The MiM had a lot going for it yesterday as it was all about the buy side from the start and continued to build into the reveal. You had to be patient on that entry. A 3:00pm ET into the close gave you 2+ points but that 3:30 entry was good for 4 if you held it into the close and another point past close.
I went in a bit early at the 3:20 time frame and set my stops and let if trade into the close. That yellow band on the chart above is the aperture time I look for entry.
I don’t want to say the same thing over and over and over and over again, but it is very important to understand that the consolidated-universal-all-encompassing closing imbalance data is not know until 3:45pm, that is the reveal. With the MiM you get an early view and prediction of how that imbalance is shaping up and what the reveal is likely to be in both size and direction.
redliontrader (09/11/2013 – 15:19:32): long in hereredliontrader (09/11/2013 – 15:20:31): 84.75redliontrader (09/11/2013 – 16:01:22): Took 87.75 for the closing squeeze
The closing action begins at 3:45 ET as the MOC orders are both locked up and revealed. Yesterdays buy size imbalances along with the fact that too many were shorting into the close gave us that nice closing squeeze as the MOC orders and the shorts had to all exit at the same time. That is the MiM advantage.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
We would expect a splashdown soon to the 101.25 area.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Little bearish divergence.
Cumulative Volume Index:
Nice accumulated volume for the bulls.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
The 40 DPI has a ways to go, less than 1/2 the stock are above their 40 day moving average.
New Highs / New Lows ratio chart :
If we are going into the grinding upside rally mode, this indicator needs to start settling and today would be a good day for that so an upturn back towards 90 would be very very bullish.
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
bullish (1 day) .
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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