Sunday July 11, 2021
VantagePoint ai Prediction for Tomorrow
VP clearly projects the anticipated direction and magnitude of tomorrow’s market.
One can use any symbol; I trade the EMini S&P.
My read of this chart is: clearly the market is poised for further move upward, but how much? And where will it stop? Is a crash coming, or do we wait 'til October?
Of course, the best thing is to run VP every afternoon, not just once a week for this newsletter.
Last week VP indicated that the Dow would continue to move upward, but it wasn't yet showing a break of overhead resistance. The Attractor is at 35,000. The Dow has broken the resistance at 34,811 but has not yet breached the key resistance at 35,000. Natural Numbers, those without decimal points like 34,000 and 35,000 hold a lot of power when it comes to trading. They act as resistance and support. That's what we are seeing here. Today's read of the VP chart shows The Dow proceeding on up to 34,915 but does not yet show it breaking 35,000.
All three VP MAVs are above the zero line, with the short-term MAV having dipped below zero last week, and now heading upwards. That shows me there is more room on the upside as the short-term MAV has to catch up with the other two.
VP (VantagePoint ai Software) suggests that tomorrow should break to the upside.
SunnyBands Implications
Dow Jones
S&P 500
There are mixed messages when analyzing the NQ, ES and INDU. The Dow (INDU) shows a buy signal while the NQ and ES both show sell signals alerted last Friday on m y DMA_H indicator. Is the Dow going to pull the other two up or are they going to pull the Dow down?
Last week I said that I was still watching the Attractor at 34,800 on the Dow. This week's news is that it was breached with the Dow reaching a high of 34,893. It's only 7 points from 34,900, which I have mentioned previously as an Attractor. But, while the Dow has broken its highest close, it has not broken its highest high.
The DMA (DynamicMovingAverage) is in buy position, having alerted on 6/21/21. The DMA_H on RadarScreen shows "Bullish //" meaning that it is signalling solidly upward. Traders are on high alert, with these Attractors overhead, not knowing whether to proceed cautiously or throw caution to the wind.
The Dow was up 448 points on Friday but down 700 points in the previous 3 days. It's wild. It looks, from the low volume reading on the Dow, that the professionals have gone home and are letting the retail traders decide whether to exhibit irrational exhuberance or step aside and let it drop.
Since this is a weekly missive, we miss the daily changes to the indicators. Send me an email if you are interested in daily updates. Or better yet, order SunnyBands and DMA_H for your own computer. Of course, like all my products, they work on intraday charts just a well.
The ES continues to move on up to new highs. I put a 200 day Linear Regression line on the ES just to see the general trend, and the ES is currently right beneath the line. It has slightly peaked above the LR line and I'm anticipating some excitement this next week as commercials and retail traders battle it out.
The Dow has an overhead Attractor at its all-time high of 35,091 which it still has to break to reach a new high. Right now it is sitting in a W pattern which is not quite a double bottom, but is nevertheless bullish. Note that the DMA_H is Gold and above the zero line, indicating bullishness.
Fibonacci Retracements and Extensions
Fibonacci extensions are getting extended. On the ES there is a line at 4,256 beneath the current market and one up much higher at 4,541. Currently the market is at 4,360,closer to the low end. The futures market is not open for another hour or I would give you that information as a hint to tomorrow's movement.
The DMA_H called for short positions on 6/16/21 at 4,215 on the ES going long again on 6/24/21. The latest signal is short since 7/8/21.
To get a long-term perspective, let's look at multiple timeframes for a second. Here's a table showing the configurations of the DMA_H on the monthly, weekly, daily, 15-min and 1-min charts of the ES. The daily and weekly configurations tell me that there are rough spots ahead as we try to break out to the upside. The two intraday configurations show me that there is going to be a struggle for the next few days.
Wouldn't you like to have these indicators for your own?
Call me and I'll send you a 7-day FREE trial of these indicators for you to see for yourself.
Stocks
In this section, I'll take a peek at a few of my favorite stocks. Like Cathy Wood, of Ark Invest, I like disruptive stocks, those that promise radical changes to the way we live, like TSLA. I also trade what I know. I use Amazon in real life, so I trade AMZN. I use Verizon as my phone carrier, so I trade VZ. I use Microsoft software so I trade MSFT and so on. Let's first look at the RadarScreen view of a few stocks:
The chart above is my main research tool. The indicators are not sorted in this view to allow you to see the mixed bag of directions we currently have. This is typical of market tops, and for this reason I am cautious.
If I sort on PHW from highest to lowest tells me which stocks are the most tradable. A stock that just moves slowly from A to B is an investment, not a tradable. I'm looking for wide swings from which to profit, not just buy-and-hold.
And if you put your instruments on the same price scale on your chart, you will learn a lot about where the money is.
To me trading is not about being right! There are lots of advisors and stock pickers out there who boast about getting MSFT at $32 and holding it for gazillions in profit. My trading style is to specialize in a few things and be good at them. The stock pickers never tell you how many they picked, only the few that were the big winners.
The columns just past the middle of the RadarScreen window show a colorful area that tells me at a glance the configuration of my DMA_H on all the stocks in this portfolio. (This indicator is called DMA_R_H, meaning DynamicMovingAverage RadarScreen Histogram.) Green Bearish \/ means the stock has been bearish but is now turning up. Purple \\ means primarily bearish. (These are the colors in the DMA_H and SunnyBands DMA. So, "purple" means Purple is on top in the DMA.) Gold Bullish // means the stock is moving upward. Red Bullish /\ means the stock has been going up but has now turned downward.
Of course, you can sort on any or several of these columns. Color coding things makes it easy for me to spot opportunities at a glance.
From this look (above) at the RadarScreen (like a spreadsheet) I can sort by SDMA, which shows me all the bullish stocks on top with Dir showing me which are moving aggressively upward and which have been moving up but have now turned down. Call me, I'll explain it. 760-908-3070 PST.
Click Here to see and listen to the DMA_H Live with BingTicks!
GOOGL has been meandering steadily upwards since right after the Covid Crash. It continues to make progress. The corrections it has taken have been small and not detering the upward progress.
On the weekly chart below GOOGL and MSFT have made corresponding moves, with MSFT experiencing less dramatic corrections, and more steady moves upward.
AMZN looks to me like it trades in fits and spurts. Periods of accumulation (consolidation, whipsaw, sideways...) followed by breaks to the upside during distribution and then more accumulation. Distribution to the weak hands follows accumulation for several weeks, until the next earnings announcement, and the is followed by a breakout to the upside. In fact, it just broke out and I am suspecting more upward movement, accompanied by upside movement in the general market indices. You can see this on the chart in the yellow rectangles.
Consider getting the DMA_H for yourself. It's a great trading tool!
Send me a note telling me what stock you would like to see analyzed next week.
Gold
Gold gave us a short signal on 6/3/21 followed by a long signal on 7/1/21 on the daily chart. It is still moving upward, currently passing above the DMA. Purple is above gold so the bias is to the downside, but it is turning up. There was a strong Attractor at 1,750, and gold took the bounce there that I was expecting. At this point I am expecting it to move on upward to the recent turning point at 1,920.
Bonds
Bonds are inching their way upward. Not speeding along, but no longer moving downward either, and are moving at a nice clip. The DMA line is "gold on top," but the DMA_H has just signalled short. Price is above the DMA giving it great support. However, price has just moved down from the upper-o uter SunnyBand which is bearish.
There is an Attractor at 168-8/32 above the market and one at 160-5/32 just below the market. I'm guessing the bonds will tick down and then back on upward to break the Fib Line Attractor.
This of course, would signal more inflation and higher interest rates. The Covid Crash high, in a moment of panic, was at 185 and there is an attractor from July 2019 at 161. Those are targets to watch. The DMA_H on the daily chart is above the zero-line with mixed gold and purple bars, but still signaling price advances.
The DMA_H on the daily chart is now above the zero-line with mixed gold and purple bars, but still signaling price advances.
IMPORTANT: Nothing in this newsletter is an offer to buy or sell securities of any type, nor is it advice to make any financial decisions. You are in charge of your assets and only you know your risk tolerance and how much you can afford to lose. Never invest/trade with money you cannot afford to lose. This information is intended as educational only.
If You Got this Free Newsletter from someone else and would like to Opt-In, and join us, click here.
Products
All subscribers to my Sunny Side of the Street newsletter, and Members of MoneyMentor, are eligible for a 10% discount on my products. Call if you are interested.
Consulting/Mentoring - There is nothing that makes me happier than my students turning into great, profitable traders. I love to help new traders, and intermediate traders who are in a slump.
"Thanks very much; I do like hearing from you [, Sunny]. Thanks to SunnyBands I now have a net worth above $1.25 Million." -Don T. [Editor's note: Don started 3 years ago with a $25,000 account. And, he told me yesterday that his account is now well over $2 Million.]
SunnyBands - SunnyBands are a extension of my DMA. The two lines above and two lines below the purple and gold DMA alert me to where the market is going. They are constructed from ATR bands on either side of the DMA.
DMA_H - Sunny"s DynamicMovingAverage in histogram format, using sophisticated math to smooth out the whipsaws.
Of course, my indicators work on any symbol, any time frame. In my own trading I use 1-min charts of the ES.
Archives
Vol 5:
I always welcome comments at sunny@moneymentor.com.
Click to unsubscribe. I'd be sad to see you go, but I will remove you from my subscribers list.
Sunny has been teaching others to trade almost as long as she has been trading. Helping struggling novices over the hurdles is a passion of hers. Sunny has won awards for her teaching and consulting, being #1 in several categories. Sunny can teach you how to use TradeStation & MultiCharts and EasyLanguage and PowerLanguage, TC2000, VantagePoint, NinjaTrader, Genesis Navigator, and MetaStock so you don’t spend months struggling on your own. If you have a concept you want programmed, she can do it for you or teach you how to do it yourself. Click Here.
We provide a wide range of software programmed by Sunny for her own trading. We are not a churn and burn shop that puts out lots of indicators for sale, just to have products to sell.
Each of these unique products is available to help others in their quest for profits. And, they are used by Sunny in her own daily trading. The software includes indicators that make trading smooth and easy, and strategies that can even be automated to provide hands-off trading. Click here for a full list, descriptions, charts and prices.
