Sunday July 25, 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 short-term and select stocks for my long-term portfolio.
My read of this chart is: even after last Monday's 900 point intraday down-draught (predicted by VP) and subsequent recovery to new highs (35,095), VantagePoint (VP) is now predicting a high of 4419 and a low of 4398 for tomorrow's ES and 35,172 high with the low at 34,983 on the Dow.
While this prediction is good for tomorrow, wouldn't you want to know every day of the week? Of course, the best thing is to run VP every afternoon, not just on Sunday nights, for this newsletter.
Last week VP indicated that the Dow was to drop dramatically on Monday, and it did! This week VP suggests that Monday will be an up day.
All three VP MAVs are above the zero-line and pointing upward strongly. That confirms the prediction. See below for my SunnyBands and DMA_H projections.
VP (VantagePoint ai Software) suggests that tomorrow should set yet another all time new high on both the Dow and the ES.
SunnyBands Implications
Dow Jones
S&P 500 (ES)
The upper-outer band of the SunnyBands is at 35,221 with the Fibonacci projection at 35,147 on the Dow. Everything seems in correspondence pointing to new highs. Even my DMA_H is gold for the last 4 days telling me that we are poised for long positions on the daily charts.
Last week I said that we would have a dramatically down Monday (VP Prediction) though not a crash and likely bounce after that, since we are still in a bull market which would say that we would bounce off the SunnyBand midline, and indeed we did.
We are going higher by "climbing a wall of worry." Everyday I have someone ask me when the next crash is. The markets look overextended, definitely, but RSI is in the mid 60s, not above 80 like we often see in extended periods.
The DMA (DynamicMovingAverage) is now in long position, having alerted on 7/20/21. The DMA_H on RadarScreen shows Bearish only on the 1-min chart and Bullish on the other timeframes.
The Dow was up 240 points Friday as folks continued to buy dips. Seems the flight to safety during the Covid Crisis is to trading from home. I keep hearing that businesses are at a loss to find employees, offering all kinds of incentives to entice new and returning employees. Yet, we are staying home in large numbers after a year of figuring out that we can do it in all new ways.
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. I can have them sent to you directly from my trading platform as I trade them. 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. All symbols, all timeframes.
The ES continues to make new highs! But, notice that the new high was a very narrow Doji bar with the open and close only 3 points apart. My stop is currently at 4,369 on the ES with the Gold on top on the DMA.
The Dow had a bit more action with the candle opening at what became the low of the day and making a new high at 35,095.33, just 5 points higher than its all time high.
BUT, the NQ in early futures trading today is registering a lackluster "not so high." It is not exactly down, but it is not up either. Friday made a double-top new high and it's now in a little channel formed by the new high at 11:15am PT and the subscquent low just at 12:20pm PT. It is just ticking back and forth between 15,115 and 15,082. This could be an early warning.
Fibonacci Retracements and Extensions
Fibonacci extensions are gathering like storm clouds overhead with the next extension at ~4,450, current close 4,403. That shows us another 47 points to the upside. As for the Elliott Wave count, I'm lost. The markets just keep climbing on upward with very few retracements with which to count clear waves. You can see that the DMA_H has gold vertical lines on the histogram, showing me a long signal from Friday. It is rare for my DMA_H to reverse itself in only one bar, so I'm looking for long-side trades tomorrow.
To get a long-term perspective, let's look at a table of my DMA_H projections over several timeframes:
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
The stocks for tonight are two Mutual Funds suggested for analysis by one of our subscribers. The exercise here is to see whether SunnyBands and my DMA_H are effective on these charts, too. Because funds post their prices only at the close of the day, these charts are line-charts not bar charts.
The first symbol shown is Fidelity Blue Chip Growth (FBGRX) and the second is TRowe Price New Horizon (PRNHX). Our reader says he pulls 20% per year simply buying dips and dollar cost averaging. More power to him!
On these charts I have also included a purple line-chart of the ES for comparison.
Readily seen is the ES blasting on out above the mutual fund, which is typical. It is very difficult for a fund to outperform the S&P. Price on this chart has exceeded the uppper-outer SunnyBand, which tells me that there is more to come, especially since the DMA_H has just turned gold. In all likelihood the DMA itself (in between the SunnyBands) will turn up sharply giving this fund more room on the upside.
The next fund is PRNHX, which shows much the same pattern though choppier. Rather than the steady rise of the S&P, this fund has lots of valleys and peaks causing it to be in a sideways channel from November 2020 until June 2021. That's a lot of time to be spinning your wheels when you could have simply done a Buy-and-Hold on the S&P instead.
Please COMMENT on my analysis, my newsletter, my indicators etc here. I love to hear from you. Let me know what symbols you want to see in the next Sunny Side of the Street.
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.
Next is the DMA_H on RadarScreen. I bet you thought I forgot it.
Tonight we see the RedLiteGreenLite indicator on the left, in red and green. It is about 1/3 bearish and 2/3 bullish. It shows my DynamicMovingAverage in three periods: 2, 5 and 10 bar lengths.
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 time it's the Dow). (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 leading the way. The next Fibonacci Attractor above price is at 2,684, thus 24 points above the current level. The standard RSI is at 78, nearly in overbought territory, but my DMASmoothed RSI is 65.87, not quite overbought and in fact, just beyond the 60 limit espoused by Constance Brown. Thus I still see more room on the upside ahead.
On the daily chart below we can see that the DMA_H has just popped its head up and become gold. That tells me it is a buying opportunity and I'll be adding more to my portfolio tomorrow. HOWEVER, I'm not a long-term holder of the shares I've just added. Like everyone else with any experience trading, I am very cautious.
AMZN looks to have broken its year-long channel to the upside. After only a few days it fell back down to test the top of the channel and has now bounced back up. Next stop 3,700 and then 3,799. Windows 11 here we come! Notice that despite the move upward that the DMA_H is in red territory, telling me there is likely another test of the top of that channel.
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 5/26/21 and proceeded on down to 1,746. Then it gave a long signal on 7/2/21 and began a slow move up to 1,831. Now it is still in a long signal, but is slowing down. The action is reminiscent of a 4-wave in its complexity, which would say to me that it is moving on up to its Fibonacci line at 1,859. When? I don't know. I'm patient and cautious, waiting to see what the next signal is.
Bonds
Bonds are still moving on upward though they have taken a little breather to regroup right under the long-term Attractor at 164-17/32. The next Attractor upward lies at 167-11/32 and that's where I think they are going. But first a little correction down to 163-3/32 which could potentially create a head-and-shoulders pattern.
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. Your use of this information presupposes that you have read and agree to the disclaimer.
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.
