Sunday August 01 , 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 the intraday down-draught (predicted by VP) on 7/16/21 and 7/19/21 and subsequent recovery to new highs (35,150 on 7/29/21), VantagePoint (VP) is now predicting another new high (but not very) of 35,172 and a low of 34,983 for tomorrow's Dow and 4,415 high with the low at 4,370 on the ES. Further down is the SunnyBands and DMA_H analysis. Actually it looks more like a sideways day tomorrow.
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.
Two of the three MAVs are above the zero-line BUT the short-term average is below the zero-line. And all three of them are flat. To me that speaks to lower lows yet to come. 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 at the same time testing some lows.
SunnyBands Implications
Dow Jones
S&P 500 (ES)
The upper-outer band of the SunnyBands is at 35,150 basis Dow (squeezing inward on price) and at 4,430 basis ES. Bands are squeezing inward on both.
The Dow is only 70 or so points above its 21-day moving average (MAV) and the 55-day MAV is down near both the DMA purple and gold lines, at about 34,540. I'm guessing that's what will be tested tomorrow, either the DMA or the 21-day MAV, or both.
The DMA (DynamicMovingAverage) is now positioned with gold on top on the daily chart and purple on top in the 15-minute chart. Mixed messages!
Here is the chart of the 15-minute Dow. I'm showing you this because of the significance of the purple Attractor I drew (the purple horizontal line) that price hits 5 times as support. This is a warning sign to me. The configuration could break down and go on down to the next level of Attraction, or the indecision this shows could take us much higher. I think the virus and the economy are keeping most folks cautious.
If you don't know what I mean by "gold on top" and "DMA_H" and "purple on top" etc, give me a call or shoot me an email. I want you to understand this stuff. It's the way I trade and I want you to be hugely successful too.
The DMA_H on a daily Dow chart has turned red and then gold and then red again. Since the current bar is lower than the previous bar the signal is bearish. Using this as an influencer I then look at the 15-minute chart to discover that yesterday was decidedly down and yet the last 4 bars on the DMA_H show that the downward pressure had lessened and the DMA_H has turned green (expecting upward motion.) My DynamicRSI is in over-sold territory, furthering the case for upward motion tomorrow.
The Dow was down dramatically (900+ pts intraday) two weeks ago and has recovered (buy weakness) right back to the trading channel it was previously in. Over the years I have come to recognize that many large corrections are preceeded by a rolling over sort of capitualtion like we are currently experiencing. I'm ready for the markets to go either way (and my intraday DMA_H will tell me) but am cautiously optimistic.
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. 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.
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 sorted in this view, by volume, to allow you to see the mixed bag of directions we currently have along with being able to see which direction the high volume stocks are trading. For instance, NVR is the highest volume and it was a bullish move, while SIVB was high volume on a bearish move. 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. For instance, here is MSFT with ADBE on the same chart, same price scale. On which one do you think is more trading opportunity?
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!
BRK.B usually has some pretty steady growth as inflation and the housing market march onward and upward. (Berkshire Hathaway | Warren Buffett) Nevertheless, if you check the price of your home on Zillow you will likely see that it has depreciated some over the last few months. Mine has. The chart of BRK.B shows a peak where I have a light blue box labeled [3]. By my count it's a 3 of a 3, which denotes a 4-wave correction coming followed by a 5-wave up. Alternately, it could be a 5 of 5 and the recent sideways a complex 4.
In any case, my DMA_H shows anticipated upward movement with the vertical lines of the histogram being primarily green. And precipitant higher prices for our real estate holdings.
On the daily chart below ETHUSD (Ethereum) is past its recent high on 7/7/21 and heading for its May high of 2,900. I'm looking for higher prices as most of the US related currencies are following a similar price pattern.
QCOM is a local San Diego company and a favorite of mine. On the chart below we see that QCOM has been in a sideways channel since early this year and it just broke out of the channel in the last few days . QCOM maintains its position as a leader in its field and I expect further movement to the upside, especially with the DMA_H showing gold for the last 2 days.
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 a long signal on 7/2/21. Gold is still in the same position with the DMA_H histogram showing green lines. A crossover of the zero-line will turn the lines gold and price will be continuing on upward.
Bonds
Bonds are in a tight range for the last 9 days. They are straddling the 23.6% Fibonacci line with the DMA on gold, just below price, at 163 3/32. The SunnyBands are beginning to squeeze price, which ofter leads to a breakout. The DMA_H is on red, meaning bearish, and look to be heading for a crossover of the zero-line. If it happens, it portends lower prices at least to the DMA.
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.
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"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.
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