52wk Hi Lo Directions

Here is an example of how 52wk HiLo, AdvDecl and Volumes on the exchange give clear market directions.

13th October Power Up

Market internals were so bullish.. that scalping a LONG from blue dot could return +300pts!! This is the correct way to trade on days like this. (on NYSE there are 15 stocks advancing for 1 decling stock). Never short the market on bullish days.

BUY day with Triple Bull Power

The chart speaks for itself. This is the day after a big fall.

Sell and sell again on power down day

Red dots sell signals rock again today !!

* Market Breadth (MB) bearish since the open, prices pulled back to Buy Number (BN).

* 1st Sell didn't go far because MI (Market Internals) were positive. It showed some buying strength.

* MI turned to negative just before 6pm. Hence Sell signals after that time, 2nd Sell, were more profitable.

* Target L3 (Level3) achieved.

Low zone range 1 Aug 08

Today, it opened lower into the low zone and stayed in low zone the whole day.

O/S Exhaustion around 3.30pm, near S1, was supporting all day.

MB= power sell around 3pm but recovered. so buying is acceptable at 6pm, when it retested S1 with no power sell.

MI = bearish after 6pm, but not consistently.


Possible trades

Buy on green dots (MACCI OS+)
Sell on red dots (MACCI OB-)

Good range trades with 40pts in each. 1min targets were all reached.

Buy in high zone

INDU opened with power up, but did not have any long entry as IF is way OB. Market Breadth lost bullishness later.

After 6.15pm, Market Internals MI turned bullish with Green dot buy signal. Hence it was a valid Long entry, netting a cool +150 pts.

$INDU Range: stocks Long & Short

* NYSE market internals were bearish most of the day, $INDU was RANGE bound reaching HIGH ZONE with bearish sentiment, reaching LOW ZONE without penetrating below it.

* A very good day to trade with LSS Range Strategy and Strong/Weak stocks day trades

* Key point: To grasp market turns at 4.00pm and 5.30pm

SHORT Trades

* $INDU nearly touched SELL number at 4.00pm and O/B

* SELL SHORT weak stocks such as SNDK, EXPE, WFMI (based on Relative Strength against $INDU Daily) or XRX, GS (based on its own cycle analysis).

LONG Trades

* $INDU couldn't go below BUY number and oversold at 5.30pm

Long: strong stocks such as BRCM, MRK, CELG, GENZ (relative strength vs$INDU)
They went up, at least to VWAP level/ MPD High area.

Top Down Approach

This approach makes use of "Market Cycle" and individual stock's technical position.

Here, CAT is identified as a strong stock relative to $INDU. We look to buy it.We buy it when the market hits the technical bottom.CAT's entry also supported by MP_ATRchannel BuyLine.




Picture Below
This is a buy entry for X on 5th March. The difference here is the use of $INDU 5min cycle.
At 6.40pm, MACCI for $INDU 10min was only -85. But two things overrided it:-
1. 5min cycle is OS
2. X (stock) was at the perfect buy position.

Going for GOLD in 2008

GOLD is a gold miner stock from Nasdaq. The gold (commodity) is making new highs and so is GOLD. Our WD60IF strategy gave a nice long trade on the first day of new year. Actually, the correct entry was 9pm 31st December 2007, but we weren't working. So, we took the trade on 2nd January 2008. GOLD is making new highs later on and it will be our long stock for this year.

Plain Sells on Range Day (from SN to BN)

Sell from Sell Number 12838 to Buy Number 12676 (+162pts). L3B 12794 is the first target.

This is one of the easiest methods but it has a trick in the first Sell as it reached R1 before 3.30pm. If L3S is set as 'Stop' at 3.30pm. Nevertheless, the system stayed short, ignoring 'powerup' internals (not shown here). Second sell entry was agressive, falling all the way below BuyNumber. 2008 does not seem to be bullish at all so far.

2008 first week for $INDU (DOW)

The first 'power down' day for 2008. LSSPower system produce two trades.