EOM “Trading Tuesday 5.31.16 SDOW & Fun Quiz AnswerWinner

Good Evening,

 
Today the Bears got the ball and hit the sell button hard until late afternoon-data from Stockcharts.com.
 
Am I already shorting the indexes?  No-not until my signals give a green light.  I expect to see multiple attempts to
break above 2100.  My front and center (weekly) chart.
 
Per the saying, “Sell in May and go away.”  Data from Bank of America/Merrill Lynch, (see attachment) shows the Institutions began
selling in March.  Were they locking in first quarter profits for a bonus check or do they know something we don’t?  Emoji
 
On Friday, I offered a fun quiz to who gave the most thorough analysis of SDOW, including a trading game plan.  I thank all who participated.
 
My primary goal; not to sell you a membership, but to make a “massive” positive impact to help you build financial wealth! 
This will only happen if you actually use and implement what you learn.
 
Your rewards; first stop losing money, then start making money.  
From your messages, some are doing quite well with my strategies and game plan-it is up to you!
 
The winner of the Fun Quiz is David V., from Missouri.  David V. has only been on board a few months. With his analysis and strategy, I see why they continue to call Missouri the “Show Me,” state. Great job!
 
SDOW – What do I see on the chart à  No BUY signal yet:
1.       SPX (still) trading above Support
2.       VIX (SMA6) below my short term trend line.
3.       SDOW trading below my short term trend line.
4.       Indicators CMF, MACD with RED bars.
5.       Both RSI and Slow STO still breaking down oversold, but not turned.
6.       Volume with recent decline and not supporting a Buy 
 
After studying the past 2 year’s history of breakouts I found that the CMF did not show a strong correlation to breakouts, so I will not consider that a part of a buy signal.  Confirmed indicator actions for positive moves are, the -.97% correlation with SPX , so support break is first needed.  A VIX trend line break showed positive SDOW moves as did the Slow STO when is rose above 20, with the support of a rising RSI from the 30’s.  MACD needed to be GREEN.  Also, large volume increases were noted on the stronger (higher) % price moves of SDOW.     
 
SDOW – Strategy à  What confirms my signals for permission to BUY (FIRE) and gives me good risk to reward?:
1.       Must have Support break of SPX
2.       Must have VIX (SMA6) trend line break, with SDOW breaking SMA15.
3.       Must have Slow STO to rise back above 20, with RSI turned up, and MACD goes Green.
4.       A Volume surge would reinforce the strength of the move with, or even after, the above signals.
 
In all, I am currently in waiting mode as “the Bull” continued on this week, BUT – I am AIMED and ready to FIRE with the above signals.
 
Great job David V., I see you get it…  
Thanks for applying what I teach!
 
If you have not set alerts on these signals, it’s time to do so.  Your online broker should have training on setting alerts/alarms/triggers…the titles are different per broker.
 
Where do we go the rest of the week?
 
Tune in tomorrow AM to see!
 
Enjoy your evening!
 
 
DOE

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Comments from David England:

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