Hey! it's a learning process and I actually learned a lot from today's market dynamics. The big argument against today's rally sustainability was the lack of volume, but given the lack of fade into the close, the most likely opening momentum tomorrow is, in fact, continued up. Negative earnings surprises or the usual revelation of of some new financial shenanigans could derail that momo, but today's strength was sooo unusual and big moves tend to carry overnight. Above is an update of this week's pivots as compared with last weeks. The yellow pivots highlight the weekly high/low range for the ETFs on the left matrix. The yellow pivots on the right matrix highlight the today's high/low range for this week's pivots. Today's pivot bounces off of the PP mean strongly argue for continued bullish momentum, and to show how expanded the ranges had become, today's 936 point gain only moved 2 ETFs of our basket 1 pivot and the other 2 ETFs 1.5 pivots. This behavior actually makes sense when we examine the %range values for the 4 ETFs. The 2 ETFs with a %range 19-21 rose 1.5 pivots. The 2 ETFs with a percent range 37-39 rose 1 pivots. Today's pivot range results correspond to last week's results, but with much more drama. Current values argue for short term range contraction, in order to bring the %range values back into mean territory.
Finally. . . a video link sent to me by fellow trader Dr. Carl Wyman. Because the video is an IDB product, the link will yield a video of J. Mazza (in Spanish). If you scroll down to the next video, you'll see the Oct. 1oth link to Nouriel Roubini. That's the one to check out before you get too excited about the longer term bullish prospects for the market.