Pitch is low and inside–Strike 2 $ES_F 17

Featured Breadth Chart of the Day:


Still not there yet.  We want a below 40 reading in here to gather the herd.

Quote of the Day:
What I hear, I forget. What I see, I remember. What I do, I understand.

Comments and Levels for the Front(S&P500 – Emini futures) contract:

Short:  1753
Long: 1728


We broke from the flag and through both our 1753 and 1741 areas on capitulation level selling.  That put in our 2nd 9:1 down day we were looking for.  We don’t have to stop at 2, we can do multiple.  What we do want to see before we climb back in is a nice 9:1 up day, a day when everyone goes on a buying spree.  We will monitor for both down and up days now.

We think we could test down to 1728.  We should get a bounce today as some buyers come in to purchase some quality.

We have the upside capped at 1753.

On the MiMSmile with tongue out


The first day of trading in February had us selling off hard with a MiM setting up to show a buy.  We took the trade at 3pm ET with our noses pinched.  We chickened out at 3:45 when the signal evaporated and when the price got back to b/e.  So no gains for us.  We will score the MiM with a closing trade, however, after discovering that the market momentum was too much for a smallish imbalance.

Though this may not seem like a good start for the MiM in February, I am a bit amazed that of all times in the day to go long, that 3pm area was indeed about the only time to make some money.  Pretty amazing.

If you have streaming issues, please let me know.  info@mrtopstep.com

Date Of Signal Direction x:00 Entry/Close x:20 Entry/Close x:30 Entry/Close
2/3/2013 Long -0.64 -2.80 -3.90
Total   -0.64 -2.80 -3.90

* – NFP Day before and day of.
** – New Year’s Eve / End Of Year

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

Comments about TLT (Twenty year Bond ETF):


We have to be patient and wait for selling in stocks to end.

>>> You can follow me on Twitter  @redliontrader <<<<<

Breadth Charts in Full:

Zweig Breadth Thrust


Looking for a younger crowd.  We want the under 40s here. 

Cumulative Volume Index:


Selling had some volume behind it.

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


Market overall is getting cheaper.

New Highs / New Lows ratio chart :


Bounce area.


Short Term Trender –  McClellan Summation Index:



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



Parting Shot: 



This weekend I will be heading to Roatan in Honduras.  I have never been and I am ill prepared.  To be honest, I don’t even know where Roatan is, come to think of it. I would have a hard time placing my finger on the outline of Honduras. My wife has planned the trip.  This is what I recall:   Honduras is in Central America and Roatan is an island off the coast on the Caribbean side.   It is a tourist destination and has warm water, reefs, and great diving.   That is all I really need to know, that and of course my hotel and plane seat numbers.

I also know that I will not be here to write this daily column.  I am sure there is WiFi there, it has permeated everywhere, but I shall put my writing chore aside for a week and learn more about my destination, its people and culture, its beauty above and below the water, and where the best cheap drinks are.

So here’s to Roatan, wherever you are.

As always we want your feedback!  marlin@redliontrader.com

Thank you for Reading –
Marlin aka RedlionTrader @redliontrader

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