22 replies to this topic

[U.F.O.]

Oh TP, don't tell me you swore off "HOT and SPICY" food as a yout? Man.....I put jalapenos in my scrambled eggs! On how to use the R2. Here's my read. A nascient uptrend was in progress on $OEX until today. The indicator has backed up and is currently showing a non-trending market. the non-tech indices ($SPX, $INDU, $NYA, $RUT) are all still on higher lows. If the market craps badly again tomorrow the R2 indicator will likely begin to rise, breaking .27 would indicate a 95% probability that a further downtrend was in place. Conversely, if today's move gets reversed tomorrow and the market rallies, the indicator would also likely move up. R2 doesn't indicate direction, only trend strength. I think the main usage of this indicator will be in trend confirmation. Yesterday, I was trying to catch an early move and it didn't happen. We're at a point in the cycle on the verge of a new, strong trend developing. My main interest here is in determining if the R2 can keep me out of the whipsaws and involved more when you actually get paid to ride that trend. U.F.O.

[U.F.O.]

P.S. TP Should you buy here? Absolutely. We're at the bottom of a bull flag. Maybe R2 will give us an indication in the next day or two of how aggressively to buy (or sell), but IMO, the next move is up. Best. U.F.O.

[kamakazeman]

kamakazeman,

The MACD is rolling over, but does not have a bearish cross and is above the 0 line. Still says longs are favored for the OEX. The CCI is pointing up, but has yet to cross above the 0 line -- an aggressive long in conjunction with the other indicators. If the CCI were above the +100, then a long trend would seem to be in place. The CCI has a lot of room overhead. If the OEX were to breakout to the upside, there would be room to move up. It is interesting to compare the Dollar-Weighted Volume with the OEX MCSUM and OEX Volume MCSUM. The ADX on this chart is helpful as a swing indicator, too.

How do you see it?

micou:
'pears that I was less able to see the little bitty charts than I thought.
anyway, the "overview" I had in mind was/is that the action on the studies on the bottom of the chart were indicating low end of the range, etc, so would not have expected the downdraft.
thx for your contributions.......
mike