Don Sew's Chat Notes 10/13 8:00 PM
Daily Signals:
DOW, NAZ, SPX, OEX, SOX : UPPER MIDRANGE
NDX : Borderline OVERBOUGHT
RUT : MIDRANGE
USD : LOWER MIDRANGE
HUI, VIX : MIDRANGE/LOWER MIDRANGE
VIX has an Island Reversal.
DOW, NAZ, SPX, OEX, SOX: have double large white candles next to each other, which could limit the upside, or set up a short term pull back.
Donald sold his entire long mutual fund position, and opened a small short mutual fund position on Friday. He also sold 3 of his four long option positions, and hedged the 4th with his short fund position.
Donald thinks there is a good chance that an intermediate term bottom has been set, and that a pull back will likely set a higher low. He is planning on establishing long positions on any pull back that fills the gap on the NDX around 850. He is not expecting a pull back to be large enough to produce a CLASS 1 BUY signal, but does not rule it out. He noticed that the Net New High-New Lows improved greatly which is bullish, unless they reverse down. The NDX has rallied 13% already.
There are weekly Imperfect Bullish Engulfing patterns on the DOW, SPX, OEX, and NAZ, and a near perfect weekly Bullish Engulfing on the NDX.
The RUT has a perfect Hammer/Dragonfly Doji.
The Capitulation Indicator has a daily reading of 4.9 as of Friday. It has turned down and gone vertical. On Friday it broke below the lower trend line of its rising flag, which is bullish for the market and bearish for the indicator. |
