Market Breadth Data******************************

Tuesday, May 31, 2011

Now here's an interesting chart to consider:



The blue line is the daily trend summary, found on p. 23 of Trading the SP500, while the second line shows the actual SPY performance for May.

FYI, the summary for June can be found on p.46

Below is MCD at the close:


Missed the low by a penny this time.

The chart below is a text book example of the ability of the "price motion model" to resolve chart patterns (J.M.Hurst, The Profit Magic of Stock Transaction Timing, pp.51 & 57):

MCD double bottom of Jan-Mar 2011.
We'll start the week with a burger:


Weekly and daily Bulls & Bears:



Saturday, May 28, 2011

Key to the Trend Matrix:


Let's focus today on 2 different charts.

While Buy Volume is nearing a short-term cyclical peak, the % Bulls indicator is exhibiting a negative divergence with price. This is telling us that buying is concentrating in fewer issues, and support for this market is thinning.



Friday, May 27, 2011

Price & Time Matrix in action:



Both price & time numbers, for every trading day of June, can be found in the Kindle edition.

If you don't have Kindle, you can order them in .pdf as well. Or, order the book and you will receive 2 months of time pivots for free.

KO with R1 & S1:

We'll finish this week with KO:


Buy Volume, as so often in the past, has provided clues for what to expect next.

Buy Volume today:


and Buy Volume yesterday:

Thursday, May 26, 2011

Wednesday, May 25, 2011

E-mini with the Price & Time Matrix:



I can think of only one place where these numbers are available well in advance.

And JPM at the close:

Next on the DJIA list is JPM:


Tuesday, May 24, 2011

Monday, May 23, 2011

E-mini with Price & Time Matrix (all the Matrix numbers for June can be found in the Companion):



JNJ at the close:

We made it half-way through the DJIA list, and it's JNJ's turn:


Sunday, May 22, 2011

Here's and update of the weekly state of the trend:


This is a quick note, just to point out the difference between the Risk/Reward (R/R) Oscillator and traditional oscillators, found in most charting packages.



The traditional oscillator can remain overbought/oversold in strong trending markets for a long time, giving you a lot of false signals.


The R/R Osc., by contrast, remains oversold in uptrends, and overbought in downtrends, giving you clues when to pyramid up or down.

Friday, May 20, 2011

Who needs to worry about round tripping once you have the Time & Price Matrix:



Same goes for INTC. For securities correlated to the SP500 one can use the same Time Pivots:

There was a small negative divergence between price and buy volume, but since this is opex Friday, expect the unexpected:


Thursday, May 19, 2011

Time for INTC:


I included position sizing for good measure.

IBM at the close:


And the E-mini Price & Time Matrix:

Price finally catching up with buy volume:



It's IBM's turn:

Wednesday, May 18, 2011

E-mini Price & Time Matrix (both price & time pivots are given in the book Trading the SP500):



HPQ at the close:

I just received a question whether HPQ is a buy here, which made me realize, that now is a good time to reiterate how to interpret the charts and data presented on this blog.

As the disclaimer on the left clearly states, there are no trade recommendations given.

Different people trade different strategies and timeframes and one size does not fit all.

As a rule of thumb, for swing and countertrend traders, price penetration of one of the channels should be an indication to consider trades in the opposite direction.

The pivot line should provide trend followers with a guidance when to consider long/short positions.

The Long/Short risk/reward ratios, and the Risk/Reward Oscillator should give all types of traders and idea whether the odds favor the long or short side.

The daily pivots should provide not only day-traders, but long term traders and investors alike with clues where to place their buy/sell and stop/loss orders in order to maximize results.

Ultimately, however, the trading decision rests with the trader/investor himself, and depends entirely on his/her circumstances. Trading is a game of odds, and there are no sure things.

This is not a black box system that spits out buy/sell recommendations, merely a tool aiming to help traders make informed decisions.
Maybe Buy Volume is trying to tell us something:



Anyway, it's time for HPQ:

Tuesday, May 17, 2011

The power of monthly pivots applied to an hourly SPX chart:



Price & Time matrix on e-mini:


And HD at the close:

Monday, May 16, 2011

Next on the list of DJIA stocks is HD:



Trend legend: Up = 2, Sideways = 0, Down = -2

C-P = Close - Pivot Line

P.S. I'm working on a more intuitive display. Let me know if these changes help.
A lot of ground to cover today.

Let's start with GE first, with the support/resistance levels given this morning, which nailed both the top and the bottom:


Next we proceed with the SPX matrix i.e. S/R Levels + Intraday CITs (for the CITs allow +/- 5 min):


And the SPX daily, still flirting with S1:


There was noticeable divergence with Buy Volume


Most likely due to the fact that the sell-off was accompanied with rotation out of certain industry groups into others. Which brings me to the Qs, and the monster gap left on April 20th:

It's time for GE:


Sunday, May 15, 2011

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