Thursday, March 25, 2010

Another Indicator Pointing Us To Contra ETFs

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I ran the GGT ETFs tonight (Thursday, 3/25), and selected all the Contra ETFs that have some form of long status (New Long, Affirmed Long, or Long).  When I import this into HGSI, we get the following graph, which I've modified from the standard default graph:


Note the following:
  1. 3rd ribbon from the top is Accumulation.  Over the past week we have seen it move from bright red --> light red --> yellow, indicating solid accumulation of the ETFs used in this chart.  This is bullish.
  2. 4th and 5th ribbons from the top are the Elder Force Index, 13d and 2d respectively.  They both transitioned to GREEN on 3/24, which is bullish.
  3. Bollinger Band and %B transitioned from a "green" background color to "bright red" in one day (3/24), indicating that we have had a significant price explosion of these stocks.  This goes to reason ... they are all relatively new to the GGT Long category.
  4. The 65d slope EMA window has 4 EMAs plotted.  These are EMAs on the slope of the 65d EMA.  ALL are turning upward, another bullish sign.  The last time these turned upward was 1/19 and 1/20, and we all know what happened between then and 2/9.
  5. In the Price window, this index has closed above the 50d EMA.  While this is an artifical index that has been built from the equity upward, anytime the price closes above the 50d for the first time I pay attention.
  6. The 50d EMA has just turned to a positive slope within the last few days.

For the record, here are the ETFs that have some form of GGT LONG status, as of the close tonight:

Note:  I'm NOT recommending any of these specifically, but be aware, the basket shown above is telling us to pay attention.

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Remember, you are responsible for your own trading decisions, not me.  Please do your homework.

Regards,

pgd