Thursday, August 12, 2010

Slow elimination

60 min chart market internals - volume analysis shows elimination of selling volume.
SBV histogram shows weakening selling signal, MVO indicator has a clear peak of selling volume at 13.30 today means selling exhaustion. Volume based quantitative sentiment and momentum indicators also show good possibility of selling elimination.
The only issue is no buying volume rising so far. Most probably bulls will attempt to push up indices after hours, pre-market and e-mini. However this volume is that strong I dont give hope for stabilisation, also friday trader's week-end sell off  can influence or weaken recovery.

1 -day SPX chart: All indicators show bearish bias
2 -days SPX chart: All indicators show bearish bias

I'd like to rise your attention: there was no major volume sell-day yesterday nor today giving high probability of quick bull turn of stockmarkets. A light dip-buy tomorrow just before market-close maybe not a bad idea.
We still stay away of stocks. Let daytraders to play their game.

Gold: As I suggested yesterday there was a clear bullish volume setup manifested intoa price change today. As usual, rise happened mostly out of market hours. However, I initiated a trade with 1 unit HUI @456. Please note again, precious metals are extreme volatile, our target is to make profit in months. I expect 20-30% in 3 months.

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