11 replies to this topic

[Douglas]

One of Terry Laundry's tools to call for a short term top was an "inverted T" using the 14 day Money Flow Index on the S&P index. The center post of the T was a peak in MFI above70, and the left post of the T is the most recent MFI turn below 20. The turn is forecast to occur at the right post which is the same distance from the center post as the left post. I believe a plot of $SPX at Stockcharts.com with the 14 day MFI indicator and Terry's inverted T projects a turn today. Regards, Douglas

[da_cheif]

One of Terry Laundry's tools to call for a short term top was an "inverted T" using the 14 day Money Flow Index on the S&P index. The center post of the T was a peak in MFI above70, and the left post of the T is the most recent MFI turn below 20. The turn is forecast to occur at the right post which is the same distance from the center post as the left post. I believe a plot of $SPX at Stockcharts.com with the 14 day MFI indicator and Terry's inverted T projects a turn today.

Regards,
Douglas

oh really?

[selecto]

really

[da_cheif]

really

HARUMPH

[thespookyone]

We're against pivot resistance, overbought, and we have an options oscillator sell. We also have a "Best Fade" Sell.

That suggests a pullback. In fact, the odds are rather good based upon those indicators alone.

BUT, there's huge risk here.

Some may remember Stickan's observation of the broke rising wedge to the upside. I think you can draw one here pretty easily and it's possible that a lot of folks are looking at that as a Bearish formation. If the break it out to the upside, it's likely that a lot of folks will be caught flat-footed and short. We know what they can do if they have a mind do, too.

Use care.

Question is, are you quick enough to take it -and will you settle for much less than you'd like? Not directed at you Mark, I know your skill level.

For the record, my stuff shows a very minor hesitation around 1802, pullback of 13 points-give or take a fuzz. Run to 1825 from there. Pullback from 1825 to 1785 or so-then get out of the way of a SERIOUS meltup.

Obviously, I'll trade the market as it comes-but I think we all pontificate a path, anyway-and the above is mine. I truly think the Chief will be right (is already) here. Breadth supports it, imho.

I called for a "stop" at 1802-right where it happened. But when you start talking "Top" size matters

[Douglas]

One of Terry Laundry's tools to call for a short term top was an "inverted T" using the 14 day Money Flow Index on the S&P index. The center post of the T was a peak in MFI above70, and the left post of the T is the most recent MFI turn below 20. The turn is forecast to occur at the right post which is the same distance from the center post as the left post. I believe a plot of $SPX at Stockcharts.com with the 14 day MFI indicator and Terry's inverted T projects a turn today.

Regards,
Douglas

oh really?

Please note that the this is a short term indicator calling for A top, not necessarily THE top. As long as Bubble Ben and Mad Mario are running the printing presses full tilt, any sell-off is likely to be short lived and just another place to buy the dip. This indicator is no holly grail, so it gives false signals occasionally. Terry's Magic T work was very unique and did make some pretty amazing calls every now and then.

Regards,
Douglas

[alanc]

I have been trying to make those T's as well, and don't see where you put those posts in. I was looking for small T to complete around Thanksgiving.

One of Terry Laundry's tools to call for a short term top was an "inverted T" using the 14 day Money Flow Index on the S&P index. The center post of the T was a peak in MFI above70, and the left post of the T is the most recent MFI turn below 20. The turn is forecast to occur at the right post which is the same distance from the center post as the left post. I believe a plot of $SPX at Stockcharts.com with the 14 day MFI indicator and Terry's inverted T projects a turn today.

Regards,
Douglas

oh really?

Please note that the this is a short term indicator calling for A top, not necessarily THE top. As long as Bubble Ben and Mad Mario are running the printing presses full tilt, any sell-off is likely to be short lived and just another place to buy the dip. This indicator is no holly grail, so it gives false signals occasionally. Terry's Magic T work was very unique and did make some pretty amazing calls every now and then.

Regards,
Douglas

[Douglas]

[quote name='alanc' date='Nov 19 2013, 09:18 AM' post='677560']
I have been trying to make those T's as well, and don't see where you put those posts in. I was looking for small T to complete around Thanksgiving.

Alanc, the T I'm referring to is not Terry's classic Magic T which uses a volume oscillator, but the T he called an inverted T which uses the MFI indicator. The small T I mentioned has its left post on the 9th of Oct, the center post on the 29th of Oct, and the right post turn day yesterday 18th Nov. As I replied to the Chief, these are strange days of infinite money printing, so bearish indicators are marginalized. It will be interesting to see if a turn actually occurs and how long the sell-off lasts if it does.

Regards,
Douglas

[selecto]

Douglas, independent of the T's, cash made a bearish engulfing yesterday, which is hi prob for nearby price decline. Really.

[selecto]

Also, the larger formation is a bearish 3 line strike, said by Bulkowski to be among the most reliable of all the candlestick patterns. But then, there were no Bencoins when he was writing his book...

Edited by selecto, 19 November 2013 - 10:39 AM.