Available Mon- Friday after 6:00 P.M. Eastern, 3:00 Pacific. 

“In spite of some misgivings, we are going to change our posture on some markets. See below.”                

DOW                                                     + 242 on 1600 net advances

NASDAQ COMP                                  + 58 on 1050 net advances

SHORT TERM TREND                         Bullish 

INTERMEDIATE TERM TREND          Bullish 

STOCKS: We had an oversold market at the opening of the session and the following happened. There was some merger activity that caused an upmove in the market. Greek banks received some funding. China’s market was up almost 5% and finally, over the weekend, Barron’s recommended the buying of commodities, specifically gold and crude oil. The latter obviously helped gold and oil shares. 

On the other hand, volume was very low, which indicated short covering instead of serious accumulation. Also, the calendar from now into October is historically weak. 

In spite of some misgivings, we are going to change our posture on some markets. See below. 

GOLD:  Gold rose $10. This was probably helped by the aforementioned article in Barron’s.   

NEXT DAY: Tuesday — No prediction   

CHART: Five day RSI for the S&P 500 curled up from an oversold condition. This normally results in further strength. 

BOTTOM LINE:  (Trading)

Our intermediate term system is on a buy. No intermediate term positions for now.

System 7   We bought the SSO at 67.27. Hold on Tuesday. It’s

disappointing that we had to pay up so much, but we should make money here.                                  

System 8   We are in cash. Stay there.                    

GOLD  We are in cash. Stay there.     

News and fundamentals:  There were no important economic releases on Monday and there won’t be any on Tuesday. 

Interesting Stuff  “The superior man blames himself. The inferior man blames others” ———Don Shula

TORONTO EXCHAN GE:   Toronto was up 164.       

S&P/TSX VENTURE COMP: The TSX was higher by 6.         

BONDS:  Bonds fell back.                                                                  

THE REST:  The dollar dropped again. Silver and crude oil were higher.                           

We’re on a buy for bonds as of June 11.                      

We’re on a sell for the dollar and a buy for the euro as of July 21.                          

We’re moving back to a buy on gold as of today August 10.                          

We’re moving back to a buy on silver as of today August 10.                         

We’re on a sell for crude oil as of July 16.                             

We’re on a sell for the Toronto Stock Exchange as of May 6.    

We’re on a sell for the S&P\TSX Venture Fund as of October 30, 2014.     

We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.  

INDICATOR PARAMETERS

 Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 13.0 or above is oversold). CBOE Put Call Ratio ( .80 or below is a negative. 1.00 or above is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative). Trading Index (TRIN) 1.40 or above bullish. No level for bearish. 

      No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.