What Did the Dow Confirm on Friday

The Dow Transportation Avg. has made several new highs in 2014 while the Dow Industrial Avg. had failed.  That is, until Friday when the Dow finally confirmed the Transports by making a new high.  In Dow Theory circles, this is confirmation that the bull market is intact.  This doesn’t mean we can’t sell off from here, as we saw plenty of selling on Friday after the new high was put in but it means that pull backs can be bought.

The DAX, NQ and TF, however, have all failed to make new highs thus far.  Just as we like to have all markets in agreement when trading intra-day, we also like to see all markets in agreement in the bigger time frames.  Right now, there is no agreement.  This may mean continued volatility with lots of back and forth type action as opposed to nice trends.

Silver is still hovering around the $20 level.  I would still like to see one last flush down to test the lows before getting a final bottom but we may just be getting a rounded bottom as opposed to a V shaped one.

Some of the option candidates have made some nice progress.  Be mindful of overall stock market selling that may continue if we take out Friday’s lows in the Dow and S&P.

Check out the rest of the analysis in tonight’s MTPredictor Elliott wave and Fibonacci trading software video.

 

Is the Rally Over?

As anticipated, the markets rallied into options expiration Friday before the selling came in mid-day on Friday.  The ES weekly wave 5 was put in and confirmed by last weeks red sellers candle formation and subsequent price break of that level.  We will see, now that we have passed the options expiration rally and Fed meeting, if things begin to roll over as they did late on Friday.

The daily ES is now in a potential wave 2 with a break below Friday’s low being a potential catalyst for more selling.  If we see a close above the daily wave 2 resistance area this week then look for a run to new highs.

The silver short is still in play.  I’m still not convinced of the rally in metals and we saw selling coming in last week.  Stops are at break even so we get a free peek to see if we can retest the lows and maybe even make a new wave 5 low around 17.50-60 levels eventually.

I also updated the option candidates and added some new ones to the mix.

Check it all out in this weeks MTPredictor Weekly Market Update.

Trader’s World Online Expo + New Book!

Traders World Online Expo #12 joins 45 top trading experts together with active traders looking for trading strategies & specific recommendations to help them profit in the markets and will be held online.

Register free to attend Expo November 12-Dec 31 2012. This event gives you optimal exposure to Trading Techniques, Technical Analysis and Market Strategies from 45 expert speakers. You’ll learn the very latest tools and high-tech trading technologies from 45 market industry veterans. This is all online and you are able to make comments and ask the speakers questions. Register FREE at www.TradersWorldOnlineExpo.com

 

 

MTPredictor will be presenting on the week of November 19th.  The title of the presentation is “Don’t Take the Trade Until You Know What the Shot Is.  aka What is Your Trade Premise?”  The video will be available for viewing during the whole week.  You will be able to ask questions and make comments after you have watched the presentation.

 

MTPredictor

 

Also, a book is available on Amazon written by the speakers of this expo that parallels the presentations given. Be sure to register at the expo so they can send you the dates of the FREE downloads on Amazon.  The Amazon book has already ranked in the top 4 of the Kindle shop for Investing/Commodities and is located here:  http://www.amazon.com/Learn-Secrets-Successful-Trading-ebook/dp/B00A2ZIJQ0

95% of Traders are Insane!

The following is my latest article published in Traders World magazine:

Click HERE to read the article, “95% of Traders are Insane!”.

http://www.mtpredictor.us/2434/95-of-traders-are-insane/

 

Catch MTPredictor at the Online Trading Expo!