Panoramic view today… Can the bears follow through? $ES_F 1857 x 1873

Featured Breadth Chart of the Day:



We are not sure of the outcome today.  The selling on Friday has us back on the accumulation trendline.  That was some real selling.   The gap up this AM needs to hold through 10:30am ET or we can expect to see selling resume.  Today is a crossroads and you need to be looking or the turn signal.

Quote of the Day:
There should be no yelling in the home unless there is a fire.
–David Oman McKay

Comments and Levels for the Front (S&P 500 – E-mini futures) contract:

Short: 1873
Long:  1857


Another weekend gap up.  When you see “who wants to own this over the weekend” that is a good time to buy.  High weekend disaster expectations that don’t materialize create nice gap up Mondays.

Today we want to watch the open for confirmation on better sentiment than Friday.   For today we expect the 1873 area, if touched, to provide enough resistance to reverse the market.  If we decide down is the direction, we would expect buyers to be in the 1857 area and look for a hold there.


On the MiM:


Symbols favored the sell side of the book but some large buys on banks going into the close with Citi at $150M and JP Morgan at $140M.  That threw the meter into a divergent outcome.

If you have streaming issues, please let me know.

Date Of Signal Direction x:00 Entry/Close x:20 Entry/Close x:30 Entry/Close
4/2/2014 Long 1.99 1.09 0.07
4/3/2014 Long 2.71 1.99 0.31
4/11/2014 Short 1.16 2.86 5.10
4/15/2014 Long 4.04 -0.21 -0.04
4/17/2014      Short 1.72 3.66 3.27
4/23/2014 Short -0.41 (xx:20)
Total   11.21 9.39 8.72


If you want to join the meter readers you can go to: Join the MiM

Comments about TLT (Twenty year Bond ETF):


If we fall apart more this week, we would expect to see the 112.75 area get reached.  If we start to rally the market again for new highs, we should see the bonds settle down and money migrate back into equities, that would have us lower.  We would expect to trade between 110.50 and 112.75

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Breadth Charts in Full:   Zweig Breadth Thrust


Bears need to crush this open today and sell us back down and get this Zweig down to an oversold (less than 40) reading, or this is just a rock back onto the heels getting ready for the next step up.


Cumulative Volume Index:


Back to the buy line.  Selling on Friday was harsh.


Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):



New Highs / New Lows ratio chart:


Still in the 90s.  Bears be warned that this could blow back up.  134 new highs yesterday on a weak day.

Trenders Short Term Trender –  McClellan Summation Index:



Long Term Trender –  Cumulative 4-week Highs – Lows (the fat lady)Nyah-Nyah:



Parting Shot: 

I love my cell phone, not as a phone but as a direct access to the web and all that brings and also for the integration of the camera.  This weekend I enjoyed my trip to Camden and snapped pictures all weekend, I use my pictures as my diary.  If a picture paints a 1000 words, I am writing a lot.

Camden is home to the Maine schooner fleet.  This two-masted schooner is getting a new paint job on a rare warm, sunny spring day.

I am a Google guy.  I know, it is scary.  I have handed over all my privacy to Sergey and Brin, but the convenience is worth it and I have nothing to hide and when I do, I will cut the cord.  My Android phone (Galaxy S4) is connected to my Gmail and Google+ accounts and all my pictures are transparently uploaded into a Google Picassa folder for perpetual storage, I don’t have to do a thing.

This picture above was a series of three shots.  A stern of boat a middle of boat and the bow shot.  On upload, Google recognizes the proximity of the three and automatically stitches the images together to make a panoramic.  I don’t have to stand there and sweep the image, shoot, shoot, shoot done.  That is great.  There are several other great new auto processing features that Google is doing on image upload.  We live in a great era.  

As always, we want your feedback!

Thank you for Reading – Marlin aka RedlionTrader @redliontrader

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