S&P Vs Adv issues

Sorry to not have been around for a few months. I have taken trading to the next level and have been busy working with some partners on automated  trading. In any case, I will be back more often from this point. I was just going through some charts tonight and wanted to bring this to your attention. Here we see the S&P 500 mini index chart and it’s relation to the advancing issues (plotted in green below). Notice the blue box I have around the climax’s in the issues. Note that during a downtrend ,which we have clearly been in for a few months now. When we see these extreme reading we usually get follow through to the downside shortly after. I have to say I am looking for a short position this week at least to get some of a pullback from last week’s strength. However, please note the last two climax reading on the issues have not triggered and selling. Why? Well this is due to the holiday. With the low volume trading around the thanksgiving holiday we often will not get the follow through we normally want. So a lot of the time around holidays the markets will drift upwards simply because sellers are not around. So I am not going to short right out of the gate Monday but rather wait into the day and see how the adv issues are holding in relation to price. If they start to break down I will start looking for a short position. I would consider call options on a leveraged ETF such as QID. Once we get a profit we must take some off as things down here can just rotate for awhile and we don’t want to get shopped around.  See you in the morning for a fresh day of trading.

Back To Trading

I have been on a break but back now. Time to get to business. Going to start the night checking out a a sector map here of the S&P 500.

Back to make a plan of attack in a little bit.