Options signal continued strength of stocks
The volatility spread study is above its moving average, signaling that option traders are bullish.
Tuesday promises to be a strong day
Markets were closed for Martin Luther King Jr. Day, but Russell 2000 futures are trading. The directional movement study (DMI) is bullish and rising. The average directional index (ADX) reveals that trend strength has edged up since the DMI turned bullish on 15 January.
Bullish signals out-number bearish ones
The volatility spread study remains bullish, but the cumulative advance/decline study turned bearish today. Of 12 studies that I consulted today, 7 were bullish and 5 bearish. Most of the bearish signals are only a day or two old.
Bullish Signals Abound
The Russell 2000 rose higher today. The volatility spread has been bullish since 9 January and remains bullish today. The toppy look of the study is not a signal, just a caution flag. The MACD study turned bullish today.
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.