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Monday, November 23, 2009
A Tale of Two Tapes
Looking around the globe it is becoming apparent that November is the month where the global divergence is likely to begin to occur.
The following stock indexes will record monthly perfected sell setups this month, nearly all below TDST Up trend lines, which means the larger downtrend has a high probability of resuming beginning in December.
Jakarta Composite (JCI)
Russian MICEX (INDEXCF)
India Sensex (SENSEX)
Bombay Stock Exchange (BSE500)
Brazil Bovespa (IBOV)
Taiwan Stock Exchange (TWSE)
Argentina Merval (MERVAL)
And then there's the "magnificent 7", seven stock indexes currently on monthly bar 7 of potential sell setups, all below TDST Up trend levels, at least for now. Remember, perfected sell setups, should they occur, require the highs of bar 8 or 9 to exceed the high of bars 6 and 7. Obviously, that implies something important about December and January.
German Dax (DAX)
S&P 500 (SPX)
Dow Jones Industrial Average (INDU)
Russell 2000 (RTY)
FTSE 100 (UKX)
Cac 40 (CAC)
Spain IBEX 35 (IBEX)
Tuesday, November 24, 2009
A123 Systems (AONE) left a Gilligan Buy Signal on November 17th. A Gilligan Buy Signal is a strategy I developed to identify climatic highs and lows--at least on a trading basis. A Gilligan buy set up occurs when a stock gaps down to a new 60 day low but closes at/near the high of the session.
Note that on November 17th AONE also undercut the low of the IPO day grabbing protective stops and flushing out some longs.
Now AONE shows a potentially bullish 1-2-3 pullback to test the lows. Think of turning the chart upside down: it is a picture of how many stocks make trading highs---with a reversal signal and a test failure of that reversal.
Trade above 15.05 will carve out an outside up day and trigger an ORB or opening range breakout on today's session and suggest an initial confirmation that a successful test has been satisfied.
See daily AONE here.
Click to enlarge
Editor's note: Jeffrey had positions in AONE at the time this Buzz was published.
No positions in stocks mentioned.
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