11/1 Indicators

The markets this morning...

Every indicator -- no exceptions -- gapped sharply at the open. I’ve rarely seen such universal volatility.

Stocks

sym	phase	trend	adx		200/50	40/10
SPY
QQQ
VIX

SPY (S&P 500) gapped down 2.8% at the open, breaking decisively below the uptrending channel in effect since Oct. 4 and returning to a sideways channel that ran from early August to Oct. 3.

QQQ (Nasdaq 100) gapped down 2.4% and remains within an uptrending channel that began Aug. 9.

VIX (fear index) gapped higher, returning to a sideways channel that began Aug. 9 after a two-week walk on the downside.

Bonds

sym	phase	trend	adx		200/50	40/10
TLT
JNK

TLT (Treasury long-term debt) gapped above a downtrending channel that began Oct. 4.

JNK (corporate high-yield debt) gapped sharply downward, extending Friday’s exit from an uptrending channel that began Oct. 4.

Tangibles

sym	phase	trend	adx		200/50	40/10
USO
GLD
JJC

USO (crude oil), gapping downward, is trading at the floor of an uptrending channel that began Oct. 4.

GLD (gold), gapping downward, has broken below a narrow rising channel in force from Oct. 20.

JJC (copper) has gapped downward, breaking below a narrow rising channel that began Oct. 21.

Global

sym	phase	trend	adx		200/50	40/10
UUP
EEM

UUP (U.S. dollar) gapped sharply upward for a second day, retracing about a third of a decline that began on Oct. 4. The 50-day moving average moved above the 200-day ma.

EEM (emerging markets) gapped down to the floor of an uptrending channel that began Oct. 4.

Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
GLD - gold, a counter-directional proxy for inflation fears.
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, against a basket of currencies; largely a dollar-euro proxy
VIX - fear index, implied volatility of the S&P 500

Key

• phase: 20-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend.
• trend: Price direction, green for higher highs and higher lows, red for lower highs and lower lows, yellow for sideways, and grey for neutral or ambiguous.
• adx: Average directional index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, 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.)
• 200/50: The moving average cross, green for the 50-day ma above the 200, red for below and yellow for closely aligned.
• 40/10: The moving average cross, green for the 10-day ma above the 40, red for below and yellow for closely aligned.

About my trading methods

Read a detailed explanation of my 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.

The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.