Friday, January 28, 2011

1/28 Morningline Update

An update on the indicators followed in the Morningline, in light of today's sharp market slump.

The downturn is being blamed on Egypt's political problems for some reason. Here's the test: When was the last time, prior to this week, that you thought about Egypt when placing a trade? ... Thought so. Maybe we need to look elsewhere for the cause.

  • S&P 500, Nasdaq 100 drop to neutrality (SPY, QQQQ).
  • Treasury long-term bonds rise to neutrality (TLT).
  • Corporate high-yield debt, crude oil turn neutral on signal divergence (JNK, USO).

Stocks and Rates
phase pfeppstrend

phase pfeppstrend

phase pfeppstrend

Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
EUR/USD - euro/dollar currency pair
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USD/JPY - dollar/yen currency pair
USO - crude oil
VIX - fear index

Table Abbreviations:
  • pfe - Location of the polarized fractal efficiency line.
  • pps - Person's Proprietary Signal mode.
  • trend - Trend of the polarized fractal efficiency line.

Key to the PPS/PFE tables
phase bull phase
bear phase
pfe +100 and above
+50 to below 100
0 to below +50
below 0 to above -50
-50 to above -100
below -100
pps bull confirmation
bear confirmation
trend uptrend
no trend

More on the PFE/PPS analysis

Read a detailed explanation of the analytical tools and how they’re used, including trading rules.

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

No comments:

Post a Comment