Much of today saw the market direction under stress. I sent an email out midway through the day to explain that much of the pressure should be expected just due to the overbought condition of the market, the worry out of Europe and the continuing concern for the Fiscal Cliff. I also explained that the market direction up, remained intact. So much so that another change was made to the market direction portfolio which FullyInformed Members can read here. Just scroll down the table to Nov 26 2012. William found the work too demanding and I wish to thank him for his help. I have a new investor friend Doug Harris who is taking on the market direction portfolio. Doug has given me various articles to write about over the years and indeed one his articles is in the yahoo options forum files section looking at his trades on Microsoft Stock. Welcome to Doug Harris.
I am a bit short on time this evening as I am working on a couple of articles for investors who have written in but I wanted to post the market direction technical timing chart for today.
Market Timing Indicators For Market Direction
Market Direction up remains intact.
For Momentum I am using the 10 period. Momentum is still positive although it is lower than Friday.
For MACD Histogram I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9. MACD (Moving Averages Convergence / Divergence) is still climbing higher after signaling market up on Friday.
The Ultimate Oscillator settings are Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
The Ultimate Oscillator is positive and now extremely overbought.
Rate Of Change is set for a 10 period. Rate Of Change is still positive.
For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic is still signaling market direction up.
For the Fast Stochastic I use the K period of 20 and D period of 5. These are not default settings but settings I set for the 1 to 3 month S&P 500 chart when it is set for daily. The Fast Stochastic is still signaling market direction up.
Market Direction Outlook For Nov 27 2012
The consensus among the market timing technical indicators is that the market direction remains up. Every technical indicator is in agreement. With the indexes now heavily overbought some selling is to be expected. However the rise back from a 100 points down in the Dow Jones shows the conviction presently among investors.
Market Direction remains up but there will be lots of resistance as the indexes try to push back to the 50 period moving average.
Trading For Pennies Strategy And Spy Put Hedge
I did one Spy Puts Hedge trade today and two Trading For Pennies Strategy trades. These were all posted to Twitter at the time of time of trading.
Internal Market Direction Links