Weekend Update April 16th, 2011
Is this love or just confusion?
Sure seems that everyone loves the Russel. Maybe they love it a little too much. 60min chart sure looks good and meets all the criteria for a ‘buy’ signal per the 60min trading strategy. 72% of the stocks in the $RUT closed in the green on Friday. Disclosure: I am not long IWM, UWM, or TNA, but maybe I should be.
Chart courtesy of FreeStockCharts.com
According to the 5/10 method, IWM should give a ‘buy’ signal on Monday.
But here is the problem I see. $RVX has closed below its lower BB and is now at levels similar to those from April 2010. The big difference between last April and this April is the fact that the BB’s on $RVX were compressing. Still, a ‘sell’ signal comes when $RVX closes back inside the lower BB.
Chart courtesy of StockCharts.com
What this set up says to me is that the $RUT may pull back a little in the week ahead, though from what level is anyone’s guess, and that a better entry level could present itself. At the moment, and subject to change without notice, I am more interested in adding to long positions rather than selling out completely; however, there are going to be a ton of earnings this week and if the market doesn’t like what it hears, then that’s another story.
Intervention is just another word for manipulation.
GL in the week ahead.
Buy/Sell Signal Generator 
according to your fav. mkt indicators-naad-1534, nyad-1857,nyadv 580,nyupv 87,nyud:nyupv -8.5, zbt 44, in your opinion are these in the area were, the mkt should be bottoming, they are pretty close to your selling climax parameters.any thoughts?TIA
Ty, I have ZBT at 45.43, which isn’t low enough.
4wk New High/Low at 14.35 is close to where it has bottomed before.
$NYSI dropped by 48 ticks when a climax signal would be a drop of 80 ticks or more.
$USHL5 http://stockcharts.com/h-sc/ui?s=$USHL5&p=D&yr=1&mn=9&dy=0&id=p88612687067
dropped to 177 when 0 or less indicates extreme oversold.
Looks like a 90% down day so some exhaustion selling there.
What all this indicates to me is that we got very oversold today, but not extremely oversold in a climax sell signal kind of way. We should see a pause in the selling for tomorrow. If after that we get some upside traction, then up we go. I’m starting to think that there is a good chance for a repeat of what happened last April.