February 14, 2014
The Russell 2000 Cumulative Advance/Decline line continues to rise – a bullish signal.
February 13, 2014
Daily signals remain bullish. Synthetic volatility was later than some other studies in turning bullish but it was solidly bullish for the past three days. The interesting thing to note, however, is that the study is drooping today when price action was strong. The signal is still bullish, but its current position invites being watchful of the potential of a top forming.
Signals remain bullish, but some are starting to setup for reversal
The discretionary/staples study anticipated the bottom nicely on 4 February and remains bullish today. However, the relative strength of staples and discretionary goods may be shifting. Note the way the study is setup to penetrate down through its moving average – a bearish signal.
Daily signals are increasingly bullish
Weekly signals remain bearish, but daily signals are increasingly in the bullish column. This smoothed rate of change study turned bullish on 6 February, the day after shares turned up from a low. This study makes quick changes, but has done well lately.
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.