The Sunny Side of the Street

SUNDAY NIGHT - July 27, 2003
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  INDU ANALYSIS | QQQs | SPY | E-MINIs | EuroDollar | General Info (Rules of Thumb) | Summary | Disclaimer
Chart

Figure 1a: COMPARISON: DOW vs SPY vs NASDAQ (Intraday)
  SECTION 1: INDU ANALYSIS  
 


Figure 1b: INDU Daily

LAST TIME I SAID:
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    As for tomorrow, we probably have a little cleaning up to do from short orders placed after today's close--and that will take the market down a bit further.  Probably to the next Attractor down, which is at 30.94.

    • FRIDAY:  The QQQ moved right down to the Attractor (the print low was actually 30.77), and bounced back up from there.

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      SECTION 3: QQQ Analysis

    Figure 3a:  QQQ Day bars

    And, the QQQs are doing the same thing, still channeling sideways.  Until something decisive happens, my analysis remains unchanged on the daily chart.  I am waiting for it to break out in one direction or the other.


    Figure 3b: QQQ 15-minute IntraDay bars

    On the intraday chart, there is some play, especially if you are watching the Sunny_DynamicAverage_Histogram.  Notice the red arrow where the indicator signaled a short and the blue arrow where it signaled a long play.  Both beautiful points for picking off intraday moves.

    As for tomorrow, I expect the up move will continue until reaching the previous day's high at 32.00, and most likely turn around and channel back down again.  If it breaks the 32 mark, then I will expect a move the the 33 level to be in the making.

     
      SECTION 5: EURODOLLAR ANALYSIS
     
    Figure 5a: EuroDollar Daily - Sunday night commentary only

    The current signal on the EuroDollar model is still short, with nothing yet to confirm or deny the signal.  My interest in shorting this market will only come if the EuroDollar drops below 98.88.  Until then, I stand neutral.  This commentary still holds, four(!) weeks later, with the ED moving ever so slowly sideways.

    And they told me currencies trend.  This is some trend ok!
     

    		  
      SECTION 6: GENERAL INFORMATION & SUMMARY  
     

    Stay sharp and on your toes.  Moves can reverse on a dime, anytime.  Let the market speak to you.  If the market is going down, by golly ignore my commentary from the night before and know that the market is going down.

    RULES OF THUMB:

    0.  I keep the chart in Figure 1a on each day's commentary simply to illustrate how much in tandem the 4 indexes I watch actually are.  For this reason, I don't always comment on every index.  Analysis of one speaks highly for the same analysis for each of the other indexes.

    1.  When price is pushing the upper Sunny_Bands upward and then eases off and moves back toward the midline, it's time to take profits.  If it starts moving up and pushing on the Sunny_Bands again, it's time to get back in.  Likewise, if the market is pushing down on the lower Sunny_Band and eases off to move back to the midline, it's time to take profits from the short play.

    2.  Divergence of the RSI and price is another good time to take profits and wait for a breakout of price before taking a position.

    3.  When the exchange puts in curbs or trading halts on a large move down, it usually (not always) stops the downward motion.  After the market reopens is a good time to take profits from your short position.

    4.  The market can't go nowhere forever.  Eventually, who knows how long it will be, there will have to be a breakout-- one direction or the other.

    5.  This commentary is for educational purposes only, and is meant only to teach readers about my indicators, other technical indicators, and how I read them.

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