Zero Divergences

With all that’s going on I often forget that not all of my loyal Zero subs have been around for years. But recently a few noobs have signed up and thus it’s important to share the occasional titbit:

2014-12-03_Zero

Here’s a great example of a bearish divergence which occurred about an hour into the open. Now, I concede that it didn’t produce a big move but it’s the kind of stuff we look out for. In simple terms: if the signal is congruent with price direction then the market appears to be truthful – if you see divergences like these then pay attention as short term tops and bottoms often happen shortly after. Of course in such a compressed VWAP bubble we probably won’t see large gyrations.

Now the only exception are very strongly trending days – when the signal is above 2 (or below -2). On those days be very cautious about picking any ST tops or bottoms, unless there is a very pronounced divergence (even then proceed with caution). The same applies to the blue scalping signals. Look at the two signals yesterday – those were great conditions for a little swing trading. During trend days however it’s best to completely ignore them.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,

The Bots Are Back!

The bots are ba-aaack! And it was about time as my crew here was getting bored out their minds. So with a bit of luck and scotch tape we may be on route for our ill-deserved annual Santa Rally. Let me get you guys up to speed:

2014-11-20_UVOL

Exhibit A: Today’s UVOL/DVOL plots - in particular the early morning gap & ramp was run like clockwork and that green UVOL curve is via some damn Mathematica function. I for one welcome our new old robot overlords!!

2014-11-20_SPX_Zero

Exhibit B: The Zero panel shows marginal participation but the morning buying frenzy was perfectly timed and apparently triggered a few dominos. That’s how it’s done, steel rats! If nothing else remember this chart for posterity - file it under ‘shot term bear traps 101′.

2014-11-20_hanmer_time

As of right now it’s looking pretty bullish here and if Thor hadn’t died and come back as a woman (damn you Stan Lee!!) he would be all over that bag of hammers on the spoos. If it ain’t broken don’t fix it – meaning until further notice my stop for my long positions remains near 2028.

It’s been pretty thin on the setup side this week – today I was only able to find one measly chart. And sorry folks – I got to keep that one for my intrepid subs. So if you got a secret decoder ring then please meet me in the lair:


More charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don't waste time and sign up here. And if you are a Zero subscriber you get free access to all Gold posts, which gives you double the bang for your buck!

Please login or subscribe here to see the remainder of this post.

See you guys tomorrow.

Cheers,

Wrapping Up The Month

As usual October has been a pretty capricious month and there wasn’t a dry eye left in the house. Tomorrow will be its last trading session but since Sunday is Halloween I don’t expect much activity. So let’s take a quick look at where we are on some of the most salient charts:

2014-10-30_EURO_monthly

The most ominous chart right now must be the Euro. We finished September near the lower Bollinger and it looks like we will be doing so again. What’s worse most likely it will be a shooting star and a drop below 1.25 may actually lead us toward the 1.2 mark. Frankly that was on my Christmas list last year and it’s about time Santa delivers! For the noobs – I’m a U.S. expat living in Europe – you do the math.

2014-10-30_ES_monthly

Pretty much the inverse situation in equities. This is one of the longest hammer candles I can remember (only challenged by the July 2011 candle) and it has reversed a whole cluster of Net-Line Sell Levels (NLSL). Very very positive and we may be scraping new highs by the end of the year.

2014-10-30_spoos_update

A quick peek at the daily and weekly panels. Nice formation here on the daily (left) side and although we are overdue for a little correction I think we may close the week above the NLBL I highlighted. That would be our first weekly buy signal in a while. With a bit of luck, effort, and some scotch tape we may be ready to roll into Santa season. Frankly a little shake out beforehand would actually be healthy and shake out some of the late comers.

But the best chart today I will have to reserve for my intrepid subs – we are most likely near one of the best monthly buying opportunities of the year:


More charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don't waste time and sign up here. And if you are a Zero subscriber you get free access to all Gold posts, which gives you double the bang for your buck!

Please login or subscribe here to see the remainder of this post.

Bonus Chart:

2014-10-30_zero

Nice bearish divergence today on the Zero Light.

Cheers,




    Zero Indicator


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