3/15 Indicators

Every indicator, without exception, gapped at the open, the direction depending upon the underlying instrument. Gapping up were the fear index (VIX), Treasury long-term bonds and the dollar against a basket of currencies. Gapping down were the S&P 500, Nasdaq 100, corporate junk bonds, crude oil, gold and emerging markets.

It's a classic flight to safety: Get out of the private sector and commodities and into government bonds, preferably those issued by the biggest and safest government on the the planet. So much for all the "government is the enemy" rhetoric.

Oil and the emerging markets index turned near-term bearish, oil within a long-term bull phase and emerging markets while neutral. The S&P 500's trend strengthened to the 20s.

Stocks

sym	chan	adx	traj	psar
SPY
QQQQ
VIX

Bonds

sym	chan	adx	traj	psar
TLT
JNK

Tangibles

sym	chan	adx	traj	psar
USO
GLD

Global

sym	chan	adx	traj	psar
UUP
EEM

Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USO - crude oil
UUP - U.S. dollar index
VIX - fear index


Key

• chan: Channel phase, with green for bull trend, red for bear trend and yellow for neutral trend.
• adx: Average direction index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 30 and up but below 40, magenta (light purple) for 20 and up but below 30, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
• traj: Trajectory of the ADX, green for strengthening, red for weakening or yellow for unchanging. Note that if the adx column is orange and the trajectory column is red, then the position must be closed.
• psar: The parabolic sar, either green for bullish or red for bearish.

About channel analysis

Read a detailed explanation of my channel analysis method, including trading rules.

Disclaimer

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.