We have a short term buy signal here as displayed for the Stock Market with the green arrow on todays bar. You can see from just looking at some of these signals that they generally give us a move over the next 2 to 5 days after triggering.I think this sets up a bounce here that will set up a great sell setup in many markets mid month or so. Bigger picture I think this next down move could be significant but we will just have to see how it sets up after this bounce. This particular signal without getting into too complex of an explanation is based on the VIX.
I do also expect Bonds to decline as this rally occurs, setting up a bigger picture buy in that market. Many of the commodity markets have been absolutely obliterated in the last week, Energies and Grains in particular and Metals. This confirms the resumption of their downtrends, so rallies in all of them are selling opportunities.
2 comments:
Thanks, Chris--this is very very helpful to us less-experienced traders.
You are welcome. Remember trading is a matter of just playing the odds which is why it is wise to never bet a large bankroll on any one trade. This signal has historically been just under 80% accurate, but that still leaves 20%of them that will be wrong. Unfortunately we can never know in advance which ones will be wrong although I try very hard to figure out a way every day!
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