Sunday June 27, 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 chart is: clearly the market is poised for further move downward, but how much? And where will it stop? Is this the crash, or do we wait 'til October? And, of course, the best thing is to run VP every afternoon, not just once a week.
The chart for today looks so much different than last week's. Why? Because a week has past and the chart only shows last Monday's prediction. Sorry, I can't post daily, so if you want your own copy of VP, just click here.
Last week the MAVs were moving downward and the ES was fast approaching the line of support (Attractor) I had drawn at 4,100. Theoretically that was fine, but in reality the market didn't drop that far. The ES hit the lower-inner SunnyBand (the lower teal line) and bounced beautifully, but didn't make a new high that day. But, it did the next, though not high enough to turn the DMA_H positive.
Now all three VP moving averages are above the zero- line, and are moving upward.
Today I believe that the Dow will likely move on up to catch up with the ES and the NQ.
VP (VantagePoint ai Software) suggests that tomorrow should move to the upside sharply.
SunnyBands Implications
Dow Jones
S&P 500
There is clear disagreement among the 3 major markets I watch. The Nasdaq still has the gold line of the DMA on top, signalling that the market is bullish, from a macro viewpoint. Yet, the Dow is significantly down and the S&P, while it still shows the gold line on top, it is "just barely" on top.
Last week I said: "The Nasdaq still has the gold line of the DMA on top, signalling that the market is bullish, from a macro viewpoint. Yet, the Dow is significantly down and the S&P, while it still shows the gold line on top, it is 'just barely' on top." The Dow still has to break 35,000 to establish a new high. That's what the 30 industrials are tellling us. But, the NQ and ES (where the tech stocks live) have both shown new highs. Some are saying it's a new tech bubble, but I don't think so--not yet at least.
The DMA (DynamicMovingAverage) has turned up on the Dow, with gold now on top, signalling more action to the upside. On the S&P gold is still on top where it has been since 6/2/21, however, but the DMA_H signalled short positions on 6/16/21. I thought last time that it would turn positive in a day or two, and it did, signalling long positions again on 6/24/21.
Since this is a weekly missive, we miss the daily changes to the indicators. Send me an email if you are interested in daily updates. Or better yet, order SunnyBands and DMA_H for your own computer. Of course, like all my products, they work on intraday charts just a well. Any time frame, any symbol.
The ES has the gold line on top (in the SunnyBands) and has made a new high. In fact, it has just pierced the Attractor at 4,260 and looks to be headed on upward. The above chart shows the ESU21 15-minutes so you can see what I am seeing for tomorrow. I paint the bars blue & red for the day sessions and green & magenta for the night sessions. (Of course, my indicator is called DaySessions.)
You can readily see that the futures contract is already trading upward in the night sessioin, reaching 4,274 as I write this. The gold line is on top and the DMA_H has signalled long positions.
If you are a TradeStation or MultiCharts user, and you want to see this on your charts, call me for a FREE 7-day trial. Remember, all SSS and MoneyMentor members get 10% off when you buy.
The Dow bounced off the lower-outer SunnyBand and began a new progression upward, gaining 939 points. It certainly looks like it will try to break the 34,500 Attractor, but there is plenty of resistance overhead, including a purple line on the SunnyBands, so only time will tell.
Remember that I trade 1-min with 5-min charts, so the long-term to me is 15-minutes. The nice thing is that SunnyBands and the DMA_H work on any symbol, any timeframe.
Fibonacci Retracements and Extensions
Fibonacci price extensions from the covid crash are now at 100% recovery and have just inched above the line, barely. There could be some pullback during the day as traders question the new high and the break of the line.
I wouldn't be surprised if I get several short trades in tomorrow as the market bounces on whether to go higher or not. The next Fibonacci line up is at 4,681. It took 147 days for the last move to break the preceeding Fib Line, but I am not expecting it to take quite as long this time.
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Stocks
In this 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.
AND, if you would like to see 2 of your stock choices in the next issue, jump to Comments and tell me the symbols.
The chart above is my main research tool. My PHW (yellow) indicator is not sorted in this figure, rather I've left them alphabetical this time so you can see the mix of signals.
If you sort on PHW 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 (above) 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. VRSN is right on top in the PHW sort. The DMA_H says VRSN is bullish still, but turning down. As you can see in the following video, most of the stocks in the SP500 are bearish right now, but a few are still moving up. Enjoy the video. The sounds you will hear are my BingTicks indicator, because the market is open and I'm trading.
Click Here to see DMA_H Live!
MSFT has been steadily rising since the DMA_H signalled long positions on 6/4/21 but just Friday gave a short signal. Of course, this could be changed in intraday trading Monday as the Attractor lies at 263.27, just 2 points down from Friday's close. If it drops further I would expect it to touch the inner-upper SunnyBand and maybe even on down to the DMA, since it is currently below the upper-outer SunnyBand. A trader's motto is always be ready for anything.
TSLA is very close to the Attractor at 711.68, and I'm expecting it to at least touch it tomorrow. The DMA_H gave a long signal on 5/20/21 at 588, made a 1-day short signal and quickly went long again and is still signalling long.
Consider getting the DMA_H for yourself. It's a great trading tool!
Send me a note telling me what stock you would like to see analyzed next week.
Gold
Gold gave us a short signal on 6/3/21 and has just gotten a long signal from the DMA_H. Usually the DMA_H signals before the DMA itself, but not before the SunnyBands. Gold is now moving sideways narrowly. There is an Attractor sitting at 1,796.90 just above price, which is today 1,779. Watch bonds tomorrow to get a further indicator of gold's direction. VantagePoint shows price moving both higher and lower tomorrow.
Bonds
Bonds are right now touching the DMA, in the center of SunnyBands . That usually means that price will bounce off the DMA and head back upward. Further confirming this direction is the fact that gold is on top.
Volatility is the word with this chart. The DMA_H gave 3 reversal signals close together, which tells me that bonds are still volatile, but it is currently on a short signal. Watch to see if they break the DMA or not. That's my signal.
I am still expecting bonds to be volatile as the powers-that-be ("they") decide if interest rates are going to be raised, and whether we are in an inflationary period or not.
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.
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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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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