NYMO McClellan Oscillator Daily Chart
NYMO is back up to the signal area where it is best to prepare for a market selloff again, at the 55-60 area and higher. Scroll back a few pages to see the prior NYMO chart we used as one tool that signaled the strong Tuesday selloff. Below the green bar is where you want to go long the markets while above the red bar is when you want to short the markets. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Markets are so bi-polar right now, the best quote I've heard all day was this: "It's definitely going down next. Unless it goes up. But definitely if it does neither of those, it will for sure go sideways for an indeterminate amount of time."
ReplyDeleteSmile.
ha agreed. I've shorted just because the last fiscal talk was 'sad'... And the macd seems to be topping, and cpc ratio hit .63 a few days ago...but mostly because we left off today 'sad'. Put those stop losses on tight.
DeleteKS,
ReplyDeletecpc = 1.01 this evening which is above 0.8, your comments?
Thx!
On CPC put/call, 1.0 and under remains complacent. The low VIX backs this up as well. Traders are not worried despite all the drama around the fiscal cliff. So markets likely have the good side priced in or near priced in, the risk to equities is to the downside.
ReplyDeleteWhen CPC printed the uber low 0.63 a few days ago, that set in motion a period that will have to occur where the CPC moves upwards, taking a lot of jogs up and down along the way, but continue upwards until it prints over 1.20 to signal time for a rally to occur. This is why the action this week is very odd. As the CPC moves higher, that should be in concert with the markets selling off, so markets should be weak and move lower as the CPC makes its way higher to over 1.20.
If CPC moves down it simply means that traders are becoming even less worried again and the market top is more likely. Markets need to sell off to send the CPC over 1.20 so then we will all know that it is time for a firm market bottom. Until then, the CPC says the bears should be pushing markets lower (despite the upside you see this week).