TTT Buy signal day 2 + Extremes Oversold = BOUNCE!

TTT Buy Signal Day 2

 

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We are just starting day 2 and we are back around the entry after spending one day desert wandering.  Our expectation is 3 to 5% up from here over these next 4 days.   Each day we will cycle through a chart to see how the buy signal is performing on that index.

 

 

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Today is the YM. This is the Dow 30 Futures.  You can see from the chart that we have hit over a 7% correction on the DOW, which has held up the best of the major indexes so far.  So on the Dow our targets for the buy signal success would be in that 1280 area.

 

Around the Globe

    Asia – CLOSED

  • Shanghai (China) +0.16%
  • Hang Seng (Hong Kong) -0.16%
  • Nikkei (Japan)+0.26%

Europe as of 7:32am EDT

  • DAX (Germany) +1.03%
  • FTSE (UK) -0.55%

Today’s Economic News:

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Quote of the day:
I was going to have cosmetic surgery until I noticed that the doctor’s office was full of portraits by Picasso. – Rita Rudner

 

Current Allocations from our room:

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Current Breadth Readings:

 

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For today we will use our Zweig Breadth indicator which is at a very extreme 30.44 reading.  We talked about it in the breath summary that readings that low don’t normally create Zweig Breadth Thrusts.  In general you will get a counter trend rally that restores the indicator above 40 somewhere then a price retest , perhaps even to a lower low price, but with a stronger A/D Zweig readings just below 40, a bullish bottom divergence that than crosses the 40 from a higher low and off to the races we go.  That would be a few weeks away.

 

ES SP500 Futures CommentsNyah-Nyah

Bounce baby bounce.   Some place somewhere.  This morning is OPEX leftovers until about noon time.  We have a nice gap up that will most likely try to be shorted in the first 15 minutes.  The reaction to that attack should help us set the day.

 

This afternoon we will be looking for signs of buying.  That hasn’t happened in a long time.  For over a week now it has been PM liquidation.

 

For now we have the ES contained between 1345 and 1280 (the 200 SMA and 10% pull back area).   We would like to see a 20 point day that holds.  We like the 1320 target and then ultimately the 1347 area, where we think the market might lose its nerve.   So we are buyers if around 1280 and sellers at those other two target areas.

 

Our breadth signals are so oversold that even though the trenders are saying don’t trust the rallies, those rallies should be big enough to make us some money from here.  We will see if the bears have something more to prove.

 

 

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US Dollar DX Futures Comments:

82 is containing the dollar.  We like it short down to 80.75 from here with a stop above 82.  So wait for some upside to enter adjusting the entry price for your risk reward targets. image

TLT Twenty Year Bond EFT CommentsConfused smile

Short time for the TLT.   It should begin to establish a range now between 124.50 and 120.  image

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