Tuesday, May 24, 2016

Continued Long-Side Progress - May 23 Close

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Outlook: short-term improving, prone to failure

Short-term:  bottoming characteristics are visible
Intermediate-term:  downtrend
Long-term:  Uptrend, but weakening

The weekly trends are down in all the major indices.

The daily trends are mixed.

When the longer-termed trends are opposing the daily trends, being fully invested in the markets simply is risky.  New entries are prone to failure.

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Cumulative Tick

Buying continued on the NYSE on Monday:

Click on the image to enlarge.

We are back above the solid red line, indicating that buying has dominated the past couple of days.  Taken in isolation, with more 52-week highs (green) than 52-week lows (red, top trace), we should be considering the long side of the market.

Long-Cash Ratio Table

The LCR Table continues to improve and we are closer to an entry signal:

Click on the image to enlarge.

The left/middle shows that the slope of the shortest measured period is positive.  This is a move in the right direction.

The right side shows that we have had two full days of the market slowing the descent -- this too is indicative of bottoming action.

While it is too early to call a short-term bottom, the current behavior is good and opens the door to enter positions on strength.

To recap the "ideal" setup, I am looking for the following LCR Table presentation:

Click on the image to enlarge.

Note that the 8d slope, on the left, is just transitioning positive (the move from red to green).  Historically, this has been a good entry signal, especially with the right side all green (acceleration to the upside).  We are not there yet, but it would be prudent to get shopping lists ready.

Strategy

Given that we are prone to failure at turning points, I'm launching a few trial balloons with tight stops.  I will require that these positions move higher on projected volume before I enter.

These are Greenfield Leader stocks.

All of these stocks are in a weekly uptrend and are in some form of "GGT Long" status:

TLK
WBMD
ORBK
GLOB
FIZZ
MITK
TTS
ENZ
FIVN
PLPM
TRUP

My entry points are as described in my newsletter.  Not only must the stock take out the entry buy-stop, but it must do it on projected volume.  This volume-price requirement will significantly reduce risk.

My end-of-day stops are as follows:

*TLK will be in trouble below 54.55
*WBMD has a stop of 63.30
*ORBK 25.17
*GLOB 36.49
*FIZZ 51.13
*MITK 8.57
*TTS 17.39
ENZ 6.10
FIVN 9.40
PLPM 4.12
TRUP  14.53

* indicates stocks with extremely favorable Effective Volume characteristics.

As always, none of these stocks should be considered recommendations to buy.  I am presenting my work for your continued research and diligence.

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Newsletter

I have finished the most recent copy of the newsletter and will send out today (Tuesday).  I simply need to proofread.

If you want to be on the newsletter distribution, then please send an email to GreekGodTrading [ a t ] gmail {d o t] com, making the appropriate changes to the email address, with the word "NEWSLETTER" in the subject and I'll add your email.

As stated above, the most recent edition (early May) is here:  goo.gl/e75Ayj

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As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.  The stocks I have listed here are not recommendations -- they are seeds for you to do your own research.

Regards,

pgd