Friday, October 29, 2010

Very little action

A lack of confidence from both bears and bulls this week. I think everybody want to see the elections over before making any bold move. Market remains bullish on longer time frames, DMI is green on both daily and weekly charts, all moving averages are pointing up and the "golden cross" looks more obvious today than on Monday when it just happened despite the fact that market stayed pretty much unchanged this week.




On the bearish side we still have a "sell" signal on MACD on all indexes except Nasdaq. We do have a bullish EMAs crossing on SPX and Nasdaq but on DOW the two moving averages are touching each other. The most bearish index is NYSE. I almost never watch this index but I had a look at Blankfiend's website the other night and I notice his chart on NYSE. This is one good reason to read what other traders think no matter how much experience you do have since it's impossible to be aware of all indexes, oscillators and indicators all the time. NYSE has generated a bearish EMAs crossing and daily DMI is pretty much neutral. It looked even more bearish two days ago but today has managed to move a little bit above a flat 5 days SMA and both EMA25 and EMA50. It may be one of those times when my system gives a false sell signal like it did on gold and silver this week but a little loss just to be on the safe it doesn't matter keeping in mind that the "leg" up was still extremely profitable for all of them, silver, gold and NYSE.



All the best!

babaro

2 comments:

  1. Thanks for the update and the plug Babaro. I LOVE your system.

    ReplyDelete

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