EOM Trading Tuesday 7.12.16 NYDOY

 

Good Evening,
Another new high for the SPX and DOW today-data from Stockcharts.com. While DOW and SPX make record high, the DOW Theory remains Bearish.
Per my Front and Center Chart I, the current (8.5%) rally is going on ten days. At some point, there will be profit taking.  Be careful, just because profit taking hits, this does not guarantee a spike in the VIX. This rally continues with less than average volume.  Note the Overbought status of the RSI and Slow Stochastics.
I am switching gears for tonight’s post and will have the SPX indicator chart for you tomorrow.
Tonight, I am answering your questions on…is it time to buy NTDOY since their  Pokemon Go promotion went viral.  Keep in mind, software going viral does not guarantee increased profits. 
 
Here is a link to the NTDOY chart for your review.  The programmers at Stockcharts.com are working on the “chart sharing” feature.  The NTDOY profile from Yahoo Finance.
Key Points…
1.  Is trading with a .69 correlation to the SPX
2.  No Dividends
3.  Is trading up 65% since the previous June low
4.  CMF is negative
5. MACD Histogram, RSI, and Slow Stochastics are extremely Overbought
6.  Parabolic Volume spikes
Action Points…
1.  If interested in shorting, contact your broker NOW to see if shares are available
2.  Set alerts if the following happens
     A.  Price breaks out or breaks down from the previous two-day action-see red box
     B.  MACD Histogram, RSI or Slow Stochastic drops
     C.  Volume drops more than 20%
Since the price skyrocketed, the SS Signals will not be effective until at least ten trading days.
Many considering shorting, will have stop sell orders to hit if/when the price drops out of the current two-day trading range with a protective buy-to-cover stop $2 above the entry price.
This can be an exciting paper trade-learning experience.
Watching-learning-earning.
DOE
 
When your Vision and Goals are Clear-Results will Appear!
This information is for Educational purposes only.
It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.
 
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