RSI on gold showing bullish divergence from price as price sets up for inverted head and shoulders. 1220 is the neckline.
Pictured are two syncronized charts. They show how consolidations create "room" for upward movement. The S&P 100 is used as an example using the S1FI index. On top is the S1FI index which displays the percentage of S&P 100 companies trading above their 50 day moving average. Below is the S&P 500. When coming off a long upward trend, shares will almost all...
Hurst cycle fans know that a deep enough drop will resync cycles and cause a period of cyclic alignment where you get a powerful move up. While we haven't had one on longer term cycles, the cyclic compression (yellow circles) have probably created a cyclic alignment similar to a drop with a "V" recovery. The rightmost circle has the short (blue) and medium term...
HUI (Gold Bugs Index) throws signals relative to the VIX that are pretty obvious and allow plenty of time for entries and exits. I'll describe how in a minute - before that think about the aspect of Gold trading that is a "worry trade" and think about what the VIX is. As that sinks in, you realize that gold buyers are often playing a much longer time frame than...
UVXY contango is fairly reliable except when sustained high VIX numbers are posting, The ratio of UVXY to VIX reveals contango / backwardation channels that are predictive to the degree that any trend channel is. This is very helpful as a ratio to forcast UVXY relative to the VIX. Pictured is the current channel with an elipses and "price" tags at the upcoming...
Pandora may be bottoming. At the end of a Falling Wedge pattern coupled by an RSI divergence channel on the Weekly chart.
On the left: CMG weekly showing negative RSI divergences for a year now. On the right: CMG daily with a negative divergence leading to a drop. (EDIT: don't seem to be able to publish weekly next to daily, so pop open weekly with the RSI and see the RSI divergence since late 2013) CMG is one of those cult stocks that never seem to die. Until they do. I will be...
Plot the ratio of SPX to SPY and most would expect a fairly constant ratio around 10:1 to pop up. But the chart itself shows the same pattern - a quarterly reset starting at about 10.02 and then ratio decay to about 9.97. Last week we were trading 9.96 on average but at end of day Friday we popped to 10.02, right on time at options expiration.. Keep the ratio...
The VIX (CBOE Volatility Index) is likely to decline over next 4 months based on a pattern repeated on the monthly chart. We just finished February and painted a long engulfing red candle. In prior instances going back 20+ years, such candles have resulted in the VIX trending downward (in aggregate) for at least 4 months (in many cases longer) after such an...