Friday, March 05, 2010

Market Tracking

This was the indices watchlist profile as of 10 AM pst yesterday and, if you've followed my previous posts on the implications here, your attention should be drawn to the green nature of both the SPX and the VIX/VXX. This unusual alignment signals short term market instability and is typified by narrowing trading ranges (which may extend for some time). This situation is further reinforced by the position of the NYAD which, at 1, reflects a neutral market condition and the TICK, which is not far off neutral at -105. This is a good time for a bathroom break.

And, while waiting for the consolidation to break, you can mosey over to the real time trackers on the right side of the blog panel to see how the Qs and GE are doing. I've recently updated these 3 vignettes, as well as the GE VIXEN and the full Qs tracker further down. All 5 FSC charts are now set to 60 bars, which improves the definition of the signals and avoids possible misinterpretation. The Volatility and Qs Prognosticators display a little algorithm that hopefully captures turns in both trending and trading range markets, while the lower (and bigger) GE and Qs charts contain a different set of indicators designed to display momentum.
I use these simple 3 real time vignettes every day to guide my Qs trades. When I see an alignment of the windows as shown below I pay attention because the short term 6 bar (yellow) linear regression lines have all tipped into a confirming pattern that translates into a high probability setup from my experience.

A little side note here: The bad news is FSC has upgraded their format since I originally developed all these charts and although they provide a dynamic widget generating feature as part of the site, it's no longer possible to create the robust charts such as those shown on the right blog panel. The good news is that I have the original code archived and the charts still display as intended in Blogger. Sometimes older is better (which is what I keep telling my wife).

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