Monday, November 25, 2013

Monday higher

The Hoot 
Actionable ideas for the busy trader delivered daily right up front
  • Monday higher, medium confidence.
  • ES pivot 1798.83.  Holding above is bullish.
  • Rest of week bias higher technically.
  • Monthly outlook: bias higher.
  • ES Fantasy Trader standing aside

Once again, the year-long pattern of just short drops between inexorable advances repeats itself with the Dow making yet another record close on Friday at 16064.77.  We now start the holiday season with a short Thanksgiving week.  And with Turkey Day on a Thursday and the markets effectively if not actually closed on Friday, I'm going to do what the pros on the Street will be doing, and that's taking the week off.  Maybe I can finally get rid of this blasted cold.  So this will be my only post this week.  Happy Thanksgiving to one and all and see you again a week from tonight.

The technicals (daily)

The Dow: Last week it looked for a while there that the Dow was finally rolling over, but it was not to be as the rubber duckie market just bobbed back up to the surface and resumed its ascent with a 55 point green candle on Friday.  The indicators are once again overbought but that doesn't seem to mean much lately.  We're back in the rising RTC and that's all this chart looks like it wants to do - keep rising.  Accordingly, we're putting the green arrow back up in the trend box.

The VIXThe VIX has now established a new steeply descending RTC to go along with a completed bearish stochastic crossover.  With the lower BB not til 12.02, and support right in the same area, it looks like the VIX still has at least a bit of room to run lower again.

Market index futures: Tonight all three futures are higher at 1:42 AM EST with ES up by a healthy 0.26%.  With positive follow-through as we ride the upper BB higher, the overnight is confirming Friday's RTC bullish trigger.  That also gives us a bullish stochastic crossover from a high level, something that's usually good for a few days worth of gains.  So this chart is now looking bullish once again.

ES daily pivot: Tonight the pivot inches up from 1788.33  to 1798.83.  With ES now above 1800, we're sufficiently above the pivot to call this one bullish.

Dollar index: Well I blew this one badly - I thought the dollar was going higher but instead it sank like a stone on Friday, down 0.46% to confirm Thursdya' doji.  This has put the indicators in a quandary, and me too.  With the trend gone, it's too tough to call this one tonight.

Euro: At least I had the sense to not call the euro last Thursday night which is good because it blasted higher on Friday to clear resistance at 1.3536.  With a fresh bullish stochastic crossover and no near-term resistance, this one is now looking higher.

Transportation: And finally the trans confirmed the upward momentum with a second day of gains that provided a bullish RTC trigger and a bullish stochastic crossover.  With indicators still well below overbought, this is an easy one - higher.

Accuracy (daily calls):

Month     right wrong  no call  conditional  batting   Dow
                                             average  points

January    5      7      6           3        0.533   -101
February   3      4      5           6        0.692    131
March      5      7      5           2        0.500    121
April      7      5      5           3        0.667    328
May        3      4      6           4        0.636     85
June       6      5      6           0        0.545    543
July      10      2      4           4        0.875    486
August    11      3      6           2        0.813    687
September  8      3      3           3        0.800    485
October    7      5      8           2        0.643    674

November   6      6      2           1        0.538    123

     And the winner is...

Thanksgiving week is historically bullish and right now  it's looking like this year will be true to form.  With all of the charts now looking reasonably bullish, the logical call is for Monday higher.  That's all she wrote.

ES Fantasy Trader

Portfolio stats: the account remains at $110,625 after 17 trades (13 for 17  total, 7 for7 longs, 6 for 10 short) starting from $100,000 on 1/1/13.  Tonight we stand aside.again.

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