For those who have the SMI in their TA arsenal, here's a synopsis for the last couple weeks on PVII that might help you better understand how to "read" it:
There are two instances since 1/15 where you can see a definite move in the making. First, the 8, 21, 13 and the 13, 25, 2 are both moving up. The 8, 21, 13 is the slower of the two and it is under the 13, 25, 2 where it should be on an uptrending stock.
The 3, 2, 1 is the fastest of all of them and it makes an initial move, crossing over the 4, 2, 3 and the 8, 21, 13 on the 19th while the 2, 1, 2 also turns up, and the 4, 2, 3 and 5, 3, 5 both hinge. There is the beginning of increased seperation between the 8, 21, 13 and 13, 25, 2 as well. There was also an increase in volume on the 16th.
The next day (1/20) the overall movement of the indicator grouping strengthens. Then there's a gap up on the 21st after this strengthening. The shorter terms reset the next day after a little pullback while the 5, 3, 5 moves into proper alignment and the move resumes on 1/25. THEN things really get good. On yet another up day on 1/26, the volume is very strong AND the shorter terms begin another reset.
Remember this reset starts on an UP day.
The 4 shorter SMI's all pull back as the price moves down a bit on the 27th and the whole crossover process begins again on the 28th. NOW...the 6 different periods have "paired up" with seperation between the longest two starting to grow again. The shortest two are right at a crossover and are above the middle two which are themselves right at a crossover of their own.
With all 6 periods "juiced" like this at the same time, investor expectations are high. There is a good deal of overall emotion behind the stock here.
Just to throw in a curve...the current configuration is such an obvious buy signal that if it were to fail, that failure would in itself be another signal...a sell signal. Either way, because of this, I now know exactly what to do with the stock going forward on a short term basis no matter what happens.
Doug R |
