Sunny Side of the Street Daily
The chart shown above is of the daily Dow Jones. I've made it a large one (which you will have to scroll back and forth) so you could see where the Attractor level is coming from. It's in the distant past, but it is strong.
The Linear Regression Line over the past 30 days is perfectly flat, indicating the Dow is stuck in a very narrow channel. I expect a meaningful breakout from this area soon. Markets only do 3 things: they move up, they move down, and they move sideways. This one has been moving sideways for too long.
So, how do you know whether to get long or short? You don't. All you can do at this point is put a stop entry above the market and one below the market and see which one gets filled first. Don't get too close. Make sure you use Average True Range to stay beyond the typical market movement.
It seems pretty clear from here. The S&P Emini Daily is headed straight for 1416. To me, at least, that seems like a magical number of some sort.
PI, for instance, is rounded down to 3.1416. I still think it is going there, but not very fast. There is still more bumping and grinding ahead at the current 1330 level. It has held steady at this level for weeks on end. Right now it has tried to break above the 1334 level, and was unsuccessful; that caused a fall below the Attractor and now it is making a re-try of that level. If it doesn't break through strongly pretty soon, then we are looking at a retracement to 1253, which would be pretty scary for most people.
The QQQ seems to be leading the Dow, from this chart. The Linear Regression Line is sloping downward, and price has broken below the Attractor from February 2011. It has turned back up in an attempt to test the Attractor, but from the state of my DynamicMovingAverage Histogram in subgraph 2, it appears that the test will fail and the market will continue its move downward for a time. Look out 55: here we come!
The Dollar Pound currency pair has just jumped above the Attractor at 1.63834 today! It should only take a day or two to make the next leap to 1.66639. There's a few pips for you. My DynamicMovingAverage has turned up from below the zero line, and crossed over its moving average. All good signs for bulls. One more day to get in before it's over. Then look out below as the market retraces back down to the 1.63834 Attractor.
STOCK PICKS (High PHWs)
In this complex RadarScreen chart, there is LOTS of information.
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