Today’s Economic News:
Mostly quiet on the Eastern front. In the US, watch the Existing Home sales.
Quote of the Day:
All good books are alike in that they are truer than if they had really happened.
Featured Breadth Chart of the Day:
This is the new high / new low chart. It remains in trend up mode and very, very bullish.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Creep, creep. We are in the trending 4 points higher/low volatility mode that we ground through in May, set up again here in what has turned out to be a very, very hot July. Today we have moved our highs up to the 1697 area with a test in the 1680 possible for the bears.
Watch that ATR, it is still running below 3. If you missed my piece on Friday about the ATR and how I use it, you can read that here:
On the MiM:
Confusion abounded on Friday as the MiM was showing a strong sell that we were trying to wave off as the Pfizer was a single $250MM sell side throwing off the MiM. We were tweeting out on http://twitter.com/mrts_imbalance . Make sure if you are trading the MiM or following it that you have that on your radar also.
We are working the next version of the Meter and we will get it out this week, that will show the symbol count on the buy and sell side. That will make it easier to pick up these divergences in order to evaluate the quality of the data.
On Saturday we are doing a MiM presentation. We will be hearing from those on the NYSE that collect the data, those that trade the data, and I will be there also talking about our current product, how I trade it, and what is coming down the road. It is an opportunity to learn more about the mechanics of the close, what the data means, and how you might interpret it.
To sign up for the MiM you can go to: http://mrtopstep.com/ghangout/the-mrtopstep-imbalance-meter-own-the-close/
Hope to see you all there with some questions.
Comments about TLT (Twenty year Bond ETF):
Double top on the 109.45 area, watch for 108.75 to hold and then a reach for 110.
>>> Follow us @redliontrader<<<<<
Breadth Charts in Full :
Zweig Breadth Thrust:
Here is a good example of a higher market price with a lower Zweig. Watch those new highs.
Cumulative Volume Index:
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
New Highs / New Lows ratio chart :
Chattering on the highs. Bullish. This is a focus chart again this week.
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.