Too many repeat trade setups - Making me nervous....
OBSERVATION: Notice how the multiple oversold readings have led to a a long string of consistent, profitable trades here. Using RgMov at a 2-month high and signals to buy when CCI is <-100 on either the CCI of 11-days (high or low).
The trend is still up, but don't you wonder how many times in a row you can keep taking cookies from the same cookie jar?
I think it's going to be time for "Something completely different".
Tim
Comments
timwest
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This may just be one of those times that something much bigger is going on under the surface of the market: With the options expiration levels at 196 both breaking today at the start of a new quarter, the market is really in a weak position. Any further sell orders could trigger more sell orders and create a contagion-type of decline. This is a very "high opportunity market situation" that comes along only rarely. Keep your eyes focused on the news tape and price action. No bounce = no buyers = watch out below.
JonR
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Excellent find Tim. Never messed with the RgMov before...
timwest
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Thanks JonR - and funny pic of the deer in the headlights -
vlad.adrian
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At a point it must go down, the longer term divergences are huge. Every stock is down on my screen, but the overall market is still holding. This can't be good
SoundTrades
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Very interesting, thank you for sharing. What is the RgMov indicator you are using?
timwest
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It's a way of looking at the way the market moves during the day, that works sort of like pivot numbers. Imagine a cumulative sum of pivot numbers being crossed. The more pivot numbers you cross on the upside, the more the line goes up. The more pivot numbers the market crosses on the downside, the more the line goes down. You can also just look at "trend in simple ways - is it above the 2 month low? = then it is an uptrend".
CosmicDust
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Will have to assume it still works, until proven wrong.
timwest
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The market climbed over yesterday's high, tripping the "buy" signal, then promptly turned down... Thanks for the comment CosmicDust