March 3, 2014
A variety of daily signals turned bearish today. Trade was essentially sideways after an opening drop and I have not taken a position… yet.
February 28, 2014
Most signals remain bullish, including the cumulative advance/decline study, but the upward trend of the study is wobbling now.
February 27, 2014
Most daily signals remain bullish, but the SPY/TLT (shares/interest rates) ratio edged to a bearish signal on 26 February. The study anticipated the previous peak 12 days in advance. Historically, the ratio has done a better job of confirming declines than anticipating them. Maybe the ratio’s behavior is changing or maybe it is giving us several week’s notice.
February 25, 2014
Several studies are hinting they may roll over to the downside soon, but the discretionary/staples ratio is clearly bullish.
Financial markets are predictable because segments of price action fit together in a limited number of patterns that are not random. Markets are unpredictable too because there is enough variability in the patterns to hide the trend at some stages of development. I am fascinated by the market and spend a lot of time working to identify price trends so I can exploit them for profit.