Charts Suggest More Upside Coming

It was a mixed day in equities, but considering how the market started out and the way it came back I would have to view the action as bullish. Options expiration week is coming up next week so the volatility we've been seeing is probably the set-up for that.

The Seven Sentinels continue to suggest more gains are coming. Here's today's charts:



As expected, both NAMO and NYMO continue to push higher, but still off the highs we typically saw during last year's rallies. This is bullish.



NAHL and NYHL are beginning to show some life and may start moving higher on any follow through action to the upside.



TRIN flipped to a sell, while TRINQ remained on a buy. Both are close to their 6 day EMAs. No concern here.



BPCOMPQ ebbed a bit higher today and also suggests more upside in the coming days.

I'll post Top 15 and Top 50 charts this weekend.

So 6 of 7 signals remain on a buy, which keeps the system on a buy. So far this buy signal is playing out very well. The mixed action we had today should have kept the day traders guessing all day, probably leaving many flat going into the holiday weekend. The economic news coming out of the media has been decidedly bearish, which should keep a lid on bullishness and thus push valuations higher. I know that may seem strange to some folks, but the market likes to climb a wall of worry, and we have a nice one right now. See you this weekend.

 

[Boghie]

CH,

Blowing that IFT on Feb 1 is going to hurt. I have to take into consideration the fact that after my last IFT (and this is only the 12th) I can only bail out of the market and make pennies. I will have no option to get aggressive or to take advantage of 'da boyz' moving to bonds.

That IFT in the 1st should have taken place late last month.

Pain and anguish. Lessons leaned.

I think I will move all of my G holdings to C/S/I using my current equity allocation. That way, I can pull that back out after my IFT limit without affecting my conservative allocation.

 

[coolhand]

CH,

Blowing that IFT on Feb 1 is going to hurt. I have to take into consideration the fact that after my last IFT (and this is only the 12th) I can only bail out of the market and make pennies. I will have no option to get aggressive or to take advantage of 'da boyz' moving to bonds.

That IFT in the 1st should have taken place late last month.

Pain and anguish. Lessons leaned.

I think I will move all of my G holdings to C/S/I using my current equity allocation. That way, I can pull that back out after my IFT limit without affecting my conservative allocation.

Two IFTs a month requires a lot of patience to catch the best moves. I don't like burning one too early unless the set-up is there for a good run to the upside. No one or two trades early in the month for me. Late in the month is okay if you still have an IFT, like the one I burned the last week of January (but it was a modest bust).

If this last SS buy signal plays out well, I'm expecting to sell mid to end of month, which should provide enough time for some downside action to carry into March and two new IFTs. That's what I'm hoping for anyway.