Featured Breadth Chart of the Day:
We have the percentage of stocks trading above their 40 day moving average. We are now below 50% as the broader market continues to correct (which actually has been happening since about October). The pattern has made a lower lower low so let’s watch that to see if it portends a further move.
Today’s Economic News:
Watch those Factory orders today at 10am ET.
Quote of the Day:
Perhaps the best thing about the future is that it comes one day at a time.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
I am not excited about any of our levels here. I am biased to the downside but I think there is more work to do here and the process of doing that work could turn the breadth around.
Both trenders are now in alignment and just in the bears camp but exhibiting a ton of noise waiting for a move to convince it directionally.
For today we will pick the 1785 as a low target area to look for longs and 1799 on the upside.
On the MiM:
The MiM did trigger just after 3:20pm and then we saw that evaporate. For December I will be studying taking entries at the point of a trigger so if at 3pm the MiM is already showing the strong bias we will track a trade from there. Then we will track an entry from 3:20 and also 3:30pm. All trades will be held to the close.
Yesterday’s ride was a bit wild on the MiM as we traveled quite a bit backwards against us before moving in the right direction and getting us out with a small loss.
Our tracking chart for December is below:
|Date Of Signal||Direction||x:00 Entry/Close||x:20 Entry/Close||X:30 Entry/Close|
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Down against 102.25 now to form a double bottom. We remain bearish but cautious on the lows but are looking for another decent break and move down to 101 for the low of the year.
102.11 was the previous low and that double tapped in August and September and sprung us up to the 109 area and now we are back again testing the lows. Just to remind everyone, we have not been down here since the summer of 2011!
Time to start pricing out CDs again!
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Breadth Charts in Full :
Zweig Breadth Thrust:
No break of the tightening pattern yet.
Cumulative Volume Index:
Selling holding for now.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
See featured chart above.
New Highs / New Lows ratio chart :
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Officially bearish now as we are red and below the 15 DMA.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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