Objective Trader

Bottom ?

As discussed on 17th of May, OT was of the opinion to start buying longs and add when we reach the 50% retracement levels.  The SPX has indeed reached the 50% retracement level ( Nov 11 low - April 12 high ) at 1291 and we rallied strong since.

Below Daily Charts suggest that we have found an intermediate bottom and P5 is upon us leading us to new highs within 2012 / early 2013

As for the Dow Jones below, the 12250 area was mention in an earlier article as "obvious support"

The SPX reached the discussed 1321 and went even to 50% retracement level mentioned on 17th May

The NDX performed well to reaching the discussed area 

Russell 2000 being the leader in last down turn should be also the leader in upcoming intermediate rally ahead.

 

Summary:

The charts look very promising for prudent traders with an intermediate view.  OT ETFs SSO , QLD, UWM etc engaged since 17th May and added at 50% retracement remain in intermediate portfolio with  view to gain in weeks ahead.

Needless to say that miners rallied strong so far and we shall see even more stronger rally days ahead in coming months

 

OT Remains Excited for HUI & MINERS

As discussed over many sessions in Chin Wag Room, couple of miners has been accummulated.

SLW, NEM, ABX and lately PAAS and HL. AEM has a bit of more allocation as the monthly chart looks to attractive. New will be GDXJ early next week and first position of FCX has been taken yesterday.

 

The HUI Weekly Chart is pointing towards a reversal and a bottom process. With the break of 13/34 EMA the HUI gave a sell signal near 550. Considering that the long term buy signal was below 300, the 13/34 EMA rules work profitable.

HUI Monthly is obviously oversold and has reached 50% retracement. Once the weekly moves up, the monthly RSI should move back above 50 and Stochastic above 20 to confirm the bullish scenario

AEM Monthly is showing bottom formation and a move over 20 in Stochastic will add more bullishness. MACD bars getting shorter as well. I am very bullish for this stock and we should see by autumn this year $52

GDX Weekly is pointing towards a weekly reversal and high volume sell bar shows panic. GDX Sell signal was at 55

There AIN"T NO BULLS LEFT  !!! and this is further positive news to keep accumulating miners at current prices.

 

 

 

50 DMA

S&P500 Percentage of Stocks above 50 DMA is near the same buy zone we saw last October 2011

Breadth & Retracements - Long Entries -

Breadth Thrust has reached the discussed level of 30 being now oversold

NYHL has broken the zero line and that is a negative. That being said, every time that happens since November 2011, we saw a nice rally

NYSE Summation has still a sell signal but has reached now very oversold and it worth to prepare long entries , e.g. ETF Indices or selective stocks

NYSE Advance - Decline has reached oversold as well

 

Nasdaq 100 has reached the discussed retracement level ( see older articles ) and we should rally very soon and strong. The plan here is to enter long now with a position and add if we would see 50% retracement.  Or add when the next rally confirms the buy signal bearing in mind a position was already taken.

SPX has reached with low yesterday of 1324 the discussed retracement 1317-1324 ( 1321 fibo ). CCI made a higher low.

Market Breadth Approaching Intermediate Entry

The last time we saw Breadth Thrust Level 30, OT posted to be long and SPX rallied from 1359 retracement to over 1400. Since then we have seen a steady decline and we are approaching again 30 and might dip just below the most.  Once we hit those levels, it is time to load the boat (bearing always money management in sight). The risk of entry versus the rewards has best odds 

The last NYSE Summation I showed was market with the blue arrow and ? sign as the curve did not fit into a bullish picture. Soon after we got the sell signal and it has not changed BUT has reached very oversold. The prudent trader is waiting for a buy signal and the more risky trader can test the water upon reaching the retracement levels in indices ( see prior article of today )

NYSE Advance-Decline has reached very oversold again as well similar to last low when SPX traded 1359 and we rallied to over 1400.

Once the Dow Jones broke the 50 EMA a sell signal was triggered. Utility Sector is holding up well being a more defensive sector. That being said, the 12,250 area in Dow Jones serves as obvious support.