After a gap up and then a couple days of consolidation, SPX once again made an all time closing high. The gap down Friday morning definitely led to some questions about the sustainability of the current bull run. I discussed two scenarios regarding that morning and fairly early on we figured out that the gap down was...
New highs again after closing at new highs last Friday. Last weekend I was cautious about what came next, but as I said then and will reiterate, the bulls still have the edge and until there is some evidence with price to doubt that, we continue to play the long side. The end of the...
Two weeks ago here I discussed the likelihood of news highs. That indeed came the following week and then continued on into last week. At this point there is no reason not to expect another new high to be made as the edge continues to reside with the bulls. Open Interest: I have pointed out […]
Closing out at all time highs in QQQ’s and SPX is obviously bullish. Furthermore, there was actually follow through from Thursday which is something that we haven’t seen for a while. For now the trend is up and whether there are warning signs or not, until the trend is violated by price there is no...
Last week here I went into length about reasons to be concerned with the long side (especially for last week because of the open interest), but pointed out that the overall trend remained bullish. I also described two separate breadth studies that concluded a pullback would likely be short-lived. In the end a gap down Monday morning […]
Last week I discussed reasons to expect downside. Unfortunately it happened in a gap down, which limited our opportunities. Still the week turned out ok because we stayed on the right side and didn’t start thinking bearish. Throughout the week I showed that the bullish trend remained intact each day at the close and now...
How Open Interest Can Signal a Trend Change
Last week here I stated “there is no reason not to expect another new high to be made as the edge continues to reside with the bulls.” That worked out nicely and I am now making a similar statement regarding next week. There is one wild card that can derail the bull run (namely Trump addressing Congress […]
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