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The Ord Oracle - 03/24/2009
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We are back to an indicator that we have not used in a while that we called “Percent Volume indicator”. What this indicator is is Up volume divided by total volume then take a 5 day average. Readings above .60 have predicted short term tops and we have notated those instances with blue arrows. Right now this indicator is in the area where previous short term tops have formed. We don’t have the volume showing but yesterday’s break to new short term highs came on lighter volume and bearish. Today’s trading touched yesterday’s high and today’s volume was lighter then yesterday’s volume. To push through a high volume should increase not decrease like it is now. We still expect a pull back here.
Sold SPX position on 2/6/09 for 3.4% Gain and now flat.
Spikes in the NYSE High-Low index, have produced short term pull back in the market. We just don’t know how high this index will jump before the pull back occurs. Yesterday’s close produced a high where previous short term highs have formed in the market in the past. Another indicator we like very much and have used it for years is the tick index. The 5 day average of the tick readings over +750 has produced short term highs. The chart above dates back a year and in every instance when 5 day average Tick reached where it is now the market has pulled back. Therefore, we are still looking for a pull back here to possibly the 74 level. Yesterday’s big run up on lighter volume suggests an “Upthrust” was performed which is a bearish pattern. Should see a pull back near term.
We Bought ASTM at 1.92, Biotech group. Long POWR at 13.70 on 12/14/07.
The Head and Shoulders pattern that we have talked about previous in our reports appears still to be in play. The last decline took GDX right down to the Neckline and rallied off which showed the Neckline had support. Yesterday GDX tested the previous high of 2/17 (37.80) on about 70% lighter volume and a short term bearish sign. the lowest low in the last couple of weeks came in on 3/10 at the 29.25 level. The March 10 low had higher volume then the previous low and therefore the 3/10 should be tested and if tested on lighter volume would trigger a bullish sign. It appears GDX is in a consolidation phase and the next pull back may complete that consolidation phase and that pull back may end near the 3/10 low. After this potential pull back our next upside target to 55 range may be on target again.
We are back to an indicator that we have not used in a while that we called “Percent Volume indicator”. What this indicator is is Up volume divided by total volume then take a 5 day average. Readings above .60 have predicted short term tops and we have notated those instances with blue arrows. Right now this indicator is in the area where previous short term tops have formed. We don’t have the volume showing but yesterday’s break to new short term highs came on lighter volume and bearish. Today’s trading touched yesterday’s high and today’s volume was lighter then yesterday’s volume. To push through a high volume should increase not decrease like it is now. We still expect a pull back here.
Sold SPX position on 2/6/09 for 3.4% Gain and now flat.
Spikes in the NYSE High-Low index, have produced short term pull back in the market. We just don’t know how high this index will jump before the pull back occurs. Yesterday’s close produced a high where previous short term highs have formed in the market in the past. Another indicator we like very much and have used it for years is the tick index. The 5 day average of the tick readings over +750 has produced short term highs. The chart above dates back a year and in every instance when 5 day average Tick reached where it is now the market has pulled back. Therefore, we are still looking for a pull back here to possibly the 74 level. Yesterday’s big run up on lighter volume suggests an “Upthrust” was performed which is a bearish pattern. Should see a pull back near term.
We Bought ASTM at 1.92, Biotech group. Long POWR at 13.70 on 12/14/07.
The Head and Shoulders pattern that we have talked about previous in our reports appears still to be in play. The last decline took GDX right down to the Neckline and rallied off which showed the Neckline had support. Yesterday GDX tested the previous high of 2/17 (37.80) on about 70% lighter volume and a short term bearish sign. the lowest low in the last couple of weeks came in on 3/10 at the 29.25 level. The March 10 low had higher volume then the previous low and therefore the 3/10 should be tested and if tested on lighter volume would trigger a bullish sign. It appears GDX is in a consolidation phase and the next pull back may complete that consolidation phase and that pull back may end near the 3/10 low. After this potential pull back our next upside target to 55 range may be on target again.
