Sunday June 13, 2021
VantagePoint ai Prediction for Tomorrow
VP clearly projects the anticipated direction and magniture of tomorrow’s market. One can use any symbol; I trade the EMini S&P. My read of this: clearly the market is poised for further move upward, but how much?
All three moving averages are over the zero- line but moving sideways, showing a bit of indecision. Yet, they are all 3 above the zero-line with the long-term on top of the other two.
Today I believe that the Dow will still move on back up to the 34,980 level, which is currently slightly above the upper-outer SunnyBands. That level is challenged, however, by attractors at 34,810, 34,228 and 34,702. I wouldn't be surprised to see the Dow push on through those levels.
VP (VantagePoint ai Software) suggests that tomorrow should move to the upside, establishing new closing highs.
SunnyBands Implications
Dow Jones
S&P 500
Last week we noticed that both the Dow and the S&P had broken out of the pennant (triangle) formation signalling further movement to the upside. It has continued to unfold. The NASDAQ is right at overhead resistance and a Fib Line and needs to break through to confirm the upward movement of the Dow and the S&P.
To register a further advance, the Dow still needs to break 34,908 and the ES needs to break 4,236. At this point, only a drop below 34,188 on the Dow and 4,108 on the ES would establish a concentrated down move to me.
If the markets continue on upward, I will move my "stops" up to 34,458 and 4,181 respectively.
The DMA (DynamicMovingAverage) is still turned upward with gold on top, confirming that the 7-day sideways movement broke to the upside as predicted previously. Price has now pierced the upper-outer SunnyBand and is likely heading toward the attractor above the market at 35,234 on the Dow and 4,293 on the ES.
The ES shows an Attractor at 4,243 and another at 4,300. (+/-) These are the areas that need to be achieved to set a strong upward move in place.
Last time I said: I'm watching for the ES to test 4,236 on the upside next. Tonight it is hovering at 4,238. Pretty good call.
The Dow has an attractor above it at 34,810 and another at 35,051. I'm expecting a test of those levels this next few days providing that price bounces off the DMA and continues upward.
The DMA is pointing upward with gold on top, though just barely, signalling further movement to the upside.
Fibonacci Retracements and Extensions
Fibonacci extensions from the big "Covid Crash" can tell us a lot about where the market might be going. The projections are to the upside, with Fibonacci retracements below the market at about 4,000, right at current price level at 4,162 and above the market at 4,346. Getting extra information from the DMA_H, it seems that the market is heading for the upper Attractors. Why? Because gold is on top and the DMA_H shows gold bars marching upward above the zero-line. Call me and I'll send you a 7-day FREE trial of these indicators for you to see for yourself.
Stocks
In this new section, I'll take a peek at a few of my favorite stocks. Like Cathy Wood, of Ark Invest, I like disruptive stocks, those that promise radical changes to the way we live, like TSLA. I also trade what I know. I use Amazon in real life, so I trade AMZN. I use Verizon as my phone carrier, so I trade VZ. Someone told me recently that some famous investor/trader does the same thing. If you know who that person is, jump to Comments and tell me who.
The chart above is my main research tool. My PHW (yellow) indicator sorted from highest to lowest tells me which stocks are the most tradable. A stock that just moves slowly from A to B is an investment, not a tradable. I'm looking for wide swings from which to profit, not just buy-and-hold.
Just right past the middle of the RadarScreen window is a colorful area that shows me at a glance the configuration of my DMA_H on all the stocks in this portfolio. (This indicator is called DMA_R_H, meaning DynamicMovingAverage RadarScreen Histogram.) Green Bearish means the stock has been bearish but is now turning up. Purple means primarily bearish. (These are the colors in the DMA_H and SunnyBands DMA. So, purple means Purple is on top in the DMA.) Gold Bullish means the stock is moving upward. Red Bullish means the stock has been going up but has now turned downward. Of course, you can sort on any or several of these columns.
From this look at the RadarScreen (like a spreadsheet) I can sort by SDMA, which shows me all the bullish stocks on top with Dir showing me which are moving aggressively upward and which have been moving up but have now turned down. Call me, I'll explain it. GOOGL is right on top in this sort, above the upper-outer SunnyBand establishing new highs. I'm holding on to my position!
TSLA has been very volatile around Tweets from Elon Musk and deliveries of its cars. Nevertheless, the future looks bright, IMHO, for the car/space/solar/battery company and its mercurial owner. Price is under the gold DMA line and holding right at the 20 and 50 day MAVs and is still beneath the 200 day MAV. The DMA_H shows upward progression and hope of a breakthough on this heavy confluence of Attractors. On the weekly chart price is meandering around the lower-inner SunnyBand with the SB contracting and purple on top. The DMA_H is signalling further movement downward. But, the 4-day SMAV is under current price, telling me that there is further room to the upside. Despite it all, I'm buying lows and holding for the long-term.
GPC, Genuine Parts, supplies the world's parts. I just used some of them in repairing the car my grandson wrecked last week. On the weekly chart it shows steady growth, with a pennant formation currently in place. To show further upside movement GPC needs to break out above the pennant, which is at 135.82. Natural numbers are also Attractors, and I expect to see a move to 136 in the near future.
Send me a note telling me what stock you would like to see analyzed next week.
Gold
It still looks like gold is heading for 2,000 to me. Price this week has been in a dull, sideways channel, and is caught in a pennant formation from 6/3/21 with an upperbound of 1,911 and a lowerbound of 1,855. Breakout of either of these bounds will signal the next direction. Price is also sitting right on top of the DMA with gold currently on top, but the DMA_H is sloping downward. This congestion simply says to watch the breakout--it could go either way.
Bonds
Bonds are inching their way upward. Not speeding along, but no longer moving downward either. The DMA line is gold on top, and the slope is decidedly upward. Price is not only above the DMA, it is now on top of the upper-outer SunnyBand, where we see most of the upward movement in any symbol.
Last week I said a break above 158-22/32 would mean more movement upward, and that's what happened. Price is now at 159-11/32. Not only that, but price is now above the 76.4% Fibonacci line, heading for 164-16/32.
The Covid Crash high, in a moment of panic, was at 185 and there is an attractor from July 2019 at 161. Those are targets to watch.
The DMA_H on the daily chart is above the zero-line with primarily gold bars, still signaling price advances.
IMPORTANT: Nothing in this newsletter is an offer to buy or sell securities of any type, nor is it advice to make any financial decisions. You are in charge of your assets and only you know your risk tolerance and how much you can afford to lose. Never invest/trade with money you cannot afford to lose. This information is intended as educational only.
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"Thanks very much; I do like hearing from you [, Sunny]. Thanks to SunnyBands I now have a net worth above $1.25 Million." -Don T. [Editor's note: Don started 3 years ago with a $25,000 account. And, he told me yesterday that his account is now well over $2 Million.]
SunnyBands - SunnyBands are a extension of my DMA. The two lines above and two lines below the purple and gold DMA alert me to where the market is going. They are constructed from ATR bands on either side of the DMA.
DMA_H - Sunny"s DynamicMovingAverage in histogram format, using sophisticated math to smooth out the whipsaws.
Of course, my indicators work on any symbol, any time frame. In my own trading I use 1-min charts of the ES.
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