Posts Tagged ‘indicator’

VXX Mechanical Trade Model

The VXX, an indicator of market volatility, is making new lows as the market goes higher. A reversal in the VXX should correspond to a reversal in the stock market. Notably, there’s a divergence forming between price and the bottom oscillator (a momentum oscillator), which means the next blip up in the index will be a (potentially tradable) buy signal. Divergences between prices and momentum oscillators precede reversals, and the technical indicators shown here are warning of a pending reversal.  - Ilene 

VXX Mechanical Trade Model

Courtesy of Allan

VXX Daily
 
VXX (ETF for VIX) is a measure of market volatility, when it rises, stocks go down, when it falls, as shown on this chart, the market rises. 
 
The above chart is set up for an Advanced GET,  EW "Mechanical Buy Signal" with the bottom oscillator failing to confirm the new lows in the index.  The trigger will be a rise in the VXX sufficient to trigger a Trend Model Buy Signal.  A prior occurrence of this set up is seen on the chart in late January and it captured a brief, but tradable rise in the VXX with a corresponding decline in the markets.  

You can trade the VXX directly, or trade the underlying market indexes.  Should this signal be triggered and in light of the severely overbought market conditions,  I will be looking for leverage to Short one or more major market averages. 

*****

Allan’s newly launched newsletter, “Trend Following Trading Model,” goes along with the trading system he’s been working on for years. Most trades last for weeks to months. A special 25% discount is available for PSW readers. Click here.  For a more detailed introduction to Allan’s methods, read this introductory article.


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NEW INDICATOR IS POINTING TO RENEWED ECONOMIC WEAKNESS

NEW INDICATOR IS POINTING TO RENEWED ECONOMIC WEAKNESS

Courtesy of The Pragmatic Capitalist 

Interesting stuff here from Econbrowser and Professor James Hamilton on a new indicator created by Goldman’s Jan Hatzius and several others.  The indicator is deteriorating substantially in recent months and could be pointing to further economic weakness.  This indicator appears to have a fairly good track record in leading past downturns: 

 FCI NEW INDICATOR IS POINTING TO RENEWED ECONOMIC WEAKNESS

Read more about this interesting new indicator at EconBrowser and at the Chicago School’s website.


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Phil's Favorites

Animal Spirits: Short Squeeze

 

Animal Spirits: Short Squeeze

Courtesy of 

(This article was originally posted on 1-22-20.)

Today’s Animal Spirits is brought to you by YCharts. Mention Animal Spirits to receive 20% off (*New YCharts users only)

Listen here:

On today’s show we discuss:



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Zero Hedge

Hong Kongers Riot Over Plans To Use Public Housing As Coronavirus Quarantine

Courtesy of ZeroHedge View original post here.

As if Hong Kongers didn't have enough of a reason to riot already...

Dozens of masked demonstrators started fires and built barricades, recalling some of the worst unrest of the pro-democracy movement protests last summer. In addition to barricading a road in Fanling district, protesters also scattered trash in the streets and hurled petrol bombs at the lobbies of buildings, Bloomberg reports.

...



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Insider Scoop

10 Medical Instruments & Supplies Stocks Moving In Monday's Session

Courtesy of Benzinga

Gainers

Antares Pharma, Inc. (NASDAQ:ATRS) stock surged 3.4% to $4.12 during Monday's regular session.

Losers

NeuroMetrix, Inc. (NASDAQ:NURO) stock decreased by 29.0% to $3.37 during Monday's regular session.

Akers Biosciences, Inc. (NASDAQ:AKER) stock declined 7.8% to $2.95.

Staar Surgical, Inc. (NASDAQ:STAA) shares declined 4....



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Chart School

Top Patterns for Retail Investors

Courtesy of Read the Ticker

Retail investors are last in line for market leading research, no matter, the retail investor can profit from these secret sauce patterns..

Well not so secret now, the main point is you do not have to climb Mount Everest to be called a mountain climber, there are many other hills to climb to make your mark. Just like stocks.

You do not have to battle with the high frequency traders to win in the markets, there are long and slow methods to do just as well.  

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Some charts from the video


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The Technical Traders

The Wuhan Wipeout - Could It Happen?

Courtesy of Technical Traders

News is traveling fast about the Corona Virus that originated in Wuhan, China. Two new confirmed cases in the US, one in Europe and hundreds in China. As we learn more about thispotential pandemic outbreak, we are learning that China did very little to contain this problem from the start. Now, quarantining two cities and trying to control the potential
outbreak, may become a futile effort.

In most of Asia, the Chinese New Year is already in full swing.  Hong Kong, China, Singapore, Malaysia, India and a host of other countries are already starting to celebrate the 7 to 10 day long New Year.  Millions of people have already traveled hundreds of thousands of miles to visit family...



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Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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