Saturday, June 12, 2010

Exhaustion Watch: Bipolar Scene in the Twighlight Zone

This week you see a Market where the medium & long term (M_TD_P & W_TD_P see explanantion ) stands on the opposite of the short term indicator readings. Normally we give the longer term indicators the benefit of the doubt and interpret the shorter ones as countertrend moves. If that's the case then you want to wait for good new short entries on top half of the table and for good new long entries on the bottom .

I've marked the upside Exhaustion here with green (rather than red what you would expect!!) because Exhaustion has a tendency to sustain and accelerate until it flips. Compare it to a campfire which is burning really hot and you know that it will die over the foreseeable future, but for the time being it seems close to the biggest heat that could even go further just one more notch/ degree.....

ActB: Active Boundaries Trend (MOMO concept based on 55d avg. ROI)
MSP: selective Candlestick signals
Vic2: false breakout trade signal
W_TD_P: weekly TomDeMark Sequential Counter and weekly Pivots are aligned
M_TD_P: monthly TomDeMark Sequential Counter and monthly Pivots are aligned

Monday and Tuesday should give us some clues where the Market will go, given that we are in the OPEX week, have a bearish bias and a good turning opportunity.
If Mr. Market decides to ignore the set up then expect some wildly bullish action into the remainder of the week, a.k.a. "melt up".

No comments:

Post a Comment