Wednesday, August 11, 2010

Strong institutional sell signal

60 mins chart shows selling volume was rising while buying volume has been eliminated. Strong support found around 1090. After-hours analysis shows selling peak has reached it's maximum today, and market is ready for a slow recovery at least for a while.

What is more interesting, 1-day chart shows dramatic change in a day. Smartmoney made a decision to stream it's liquidity out of stocks. It happened too fast, triggering an immediate price manifestation. Selling volume rose to 9% from zero in a day.  Daily SBV shows 4% positive signal with a high probability of crossing signal lines usually mean this cycle will reach an unsafe territory.
In a clear and safe bull market selling volume on AD indicator is flat zero.
Except on SBV Histogram, all other indicators show a possible trend change to bear.

Only hope for bull recovery is the 2 days chart. SBV oscillator did not reach it's critical 33% level, also SBV histogram shows 18% signal, that usually means market has enough power to recover. What is a negative sign, selling volume rose to 11% from zero in a day.

As you can observe, I did not indicate a new trade on SPX. Our strategy, the silly bull will wait for clear signals. And this market lost its power for a while. No dip-buy.
However, liquidity and inflation pressure is that huge it'll find it's place again in stock markets. It's only matter of time. It's not a must to trade every time.

Gold and gold miners: 60-min, 1-day and 2-day analysis shows that gold is cooling down from its overbought status. On both 1 and 2 day volume charts clear signals of trend change to bull from it's bearish cycle finished today and ready for a nice price manifestation.

I'd like to rise your attention: silver. We are very close to have a bounce.

Both silver and gold is a long-term speculation, a classic buy and hold-type of investment. I loaded more double long gold and silver today, also will make a HUI trade here in this blog tomorrow.

Inflation, our best friend is knocking on the door, so I'd not worry about stock market neither precious metals on long-term.

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