Saturday, November 13, 2010

Unsafe market conditions

Since 3 of September, this is the first time we have a rising sell volume line on RUA 1-day chart EOD.
We had lots of doubt and so far it was not clear what's happening on the market. I was waiting for a further 1-1.5% rise before this status, but now market clearly stated it's turn on Friday:
Market reached unsafe status.

We liquidate our remaining 1 unit SPX on Monday .

1-Day RUA:

Histo in negative territory, oscillator is 3% far from unsafe level, sell volume rose to11% in a day.
Long histo is in negative territory as well, momentum signal bearish.

RUA 2-days:

2-days chart is pretty healthy as per moment. The only signal is the momentum. Few days needed to see if market can recover.

SPX 1-day:

SPX signaled bearish surge 2 days ago. Please observe the non-MV based profit taking (based on experience and speculation) and MV-based profit taking levels. I feel it's a real proof how powerful can volume based TA be in a beginner's hand.

HUI 1-day:

Gold miners hold extremely well. I risk to tell smarts drag prices in order to insert more volume.
We need to wait few days more to check whether 542 is kept or will it go lower. As histo is very close to a bearish cross my estimation some further fall. If HUI falls under 540 I sell 1 unit on Monday.

Dollar 1- day:

Dollar bull is in progress.

Summary: Market is unsafe. While market counts pretty strong losses, gold miners hold pretty well.
We practice profit taking ASAP, only  keep 1 unit of HUI in.

Good luck!!

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