Where the $TICK - Price Momentum Indicator Keeps Me Out of Trouble

This is where the $TICK - Price Momentum Indicator has been keeping me out of trouble since I began using it a few months ago.

As the European markets were closing at 1130 ET, the ES Futures was again testing the morning low. It might be tempting to take a long position thinking that the market would jump up again, but the indicator was red, which is indicating a downward momentum. I just about never start a long position while the indicator is red now-a-days. An obvious $TICK - Price divergence is an exception.

Another potential loss not experienced.

Charles

Morning Review - 09/03/08

The market is staying in a narrow range, which is typcial after a wide range day. Bias is slightly to the bullish side as the market is using yesterday's low as support. Notice the higher lows of the $TICK as the ES Futures test the lows.

Charles

PreMarket Perspective - 09/03/08

The S&P 500 Index is sitting on top of a two week support area with the possible completion of the two-day down cycle. Crude is remaining below 112, and the dollar is holding onto its recent strength. Watch market reactions to test of recent bottoms.

The Index is staying in a tight range with the bulls with a slight advantage. Beige Book today at 1400 ET, and various employment data coming out in the next two days with the monthly report Friday morning.

Charles

AfterMarket Data - 09/02/08

Charles

Reluctant to go Long Mid-Day 09/02/08

Mid-day one might think that momentum is changing to the upside.

However, I am always reluctant to go long when the market is testing the 0930 ET open from the bottom, and a 50% correction of a down swing wave. I typically wait for the market to trade through this resistance, and then come back from the top to test the support before considering a long position.

Charles

Market Structure Confirms Momentum - 09/02/08

A nice example where momentum reverses first, and then is confirmed by market structure.

Charles

PreMarket Outlook - 09/02/08

European Markets climbing as energy falls and dollar strengthens!

Link to Suri Duddella's interview mentioned in a previous post.

Charles