Shark I1 was not inverse. It allowed me to exit shorts 9/30 to 10/10-13 and escape a big rally. Sunday's rallies in stocks and commodities were because the G-20 produced nothing in the way of action that limited Fed money creation and the subsequent weight on the dollar. The BRICs and Asians did not use their increasing clout to condemn U.S. manipulations. Hence the rallies in the markets. I1 is not overcoming the Fed and the Fed probably will not stop until after the elections. Maintain minimal shorts except for brief trading opportunities until support is taken out (DJI 5-minute,370-unit).
Steve, the 370 unit EMA on the Dow 5 min chart is now at 11,114. You would subtract .5 percent from that to get support, right? That gives us a DOW price of 11058.
So by this method, you would say that major support is broken when DJI trades below 11058? And that would be confirmation that the downtrend is likely to last, right?
30-minute SMA SP futures has an envelope of .5% on a 30-minute close. DJI 5-minute, 370-unit EMA has an envelope of 1.35%. The 30-minute M/A is currently 1180.88.
L1 was almost completely inverse in september and october. Do you know why? Not sure what L1 is based on
ReplyDeleteShark
ReplyDeleteI1 was not inverse. It allowed me to exit shorts 9/30 to 10/10-13 and escape a big rally. Sunday's rallies in stocks and commodities were because the G-20 produced nothing in the way of action that limited Fed money creation and the subsequent weight on the dollar. The BRICs and Asians did not use their increasing clout to condemn U.S. manipulations. Hence the rallies in the markets. I1 is not overcoming the Fed and the Fed probably will not stop until after the elections. Maintain minimal shorts except for brief trading opportunities until support is taken out (DJI 5-minute,370-unit).
Steve, the 370 unit EMA on the Dow 5 min chart is now at 11,114. You would subtract .5 percent from that to get support, right? That gives us a DOW price of 11058.
ReplyDeleteSo by this method, you would say that major support is broken when DJI trades below 11058? And that would be confirmation that the downtrend is likely to last, right?
30-minute SMA SP futures has an envelope of .5% on a 30-minute close.
ReplyDeleteDJI 5-minute, 370-unit EMA has an envelope of 1.35%.
The 30-minute M/A is currently 1180.88.