Sunday August 08 , 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: Up, up and away! VantagePoint predicts a high ot 35,331 and a low of 35,103 for tomorrow's Dow Jones Industrials. However, all three MAVs are in congestion. They are above zero, yes, but to me it looks like sideways whipsaw. Watch out for falling knives.
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, like I do for this newsletter.
All three VP MAVs are above the zero-line but seem to be mmoving sideways. See below for my SunnyBands and DMA_H projections. I'm wary of a correction coming, but continue to trade the 1-minute charts in the direction called for by my DMA_H indicator.
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
The chart of the Dow (above) looks pretty much like climbing a wall of worry to me. It keeps going up, but the DMA_H has a LOT of red in it, telling me that it has been up, but struggling to do it. However, if you look at the Fibonacci projections (below) you'll see that the 23.8% line above the market lies at 36,168 and the guesser in me thinks it will go to that level. How soon? Don't know. It might run a little scare first and drop to the DMA midline first, which lies at 34,635. As always, be wary.
S&P 500 (ES)
The upper-outer band of the SunnyBands is at 4.425 with the Fibonacci projection at 4,541. The 21 day MAV lies under the market at the lower-outer SunnyBand. If it drops sharply, that's where I expect it will go. Friday's price action yielded a small red candle that appears to me to suggest lower prices, not higher. The inner-upper band is at 4,399 and I expect we will see it hit.
Last week I said that the market was giving mixed messages. On the weekly chart last week gave us a red Doji candle, lying just barely below the previous week's high. It is now under the SunnyBands upper-outer band and the DMA_H has been calling for shorts, with its red state. Wouldn't surprise me a bit if this coming week dropped us to the midline at 4,256.
The DMA (DynamicMovingAverage) is still in a long position on the daily chart, with the gold line on top of the purple, having alerted on 7/20/21. The DMA_H on RadarScreen shows Bullish on all time frames but the daily, with it showing Bullish but turning down.
The Dow was up 144 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. It seems that everyone is interested in investing now, with bonds and gold misbehaving and interest rates at zero, so there's no point in putting money in the bank. Might as well try to make some money trading. HOWEVER, remember that most people lose their money trading. It takes years to get good at this game.
CONSIDER joining my LIVE Trading Room. I'll be trading live and answering questions every Tuesday morning at 10am PST. It's FREE for the first 15 people who sign up, and $29.95 after that. Join by checking the appropriate box in the Sunny Side of the Street sign-up form.
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.
Fibonacci Retracements and Extensions
Fibonacci extensions are getting congested too. The next FibLine above the market lies at 4,709. I don't know how long it will take to hit that, but I expect the market is trying! Still, the DMA_H is red which could mean a down-turn, or more consolidation. Watch your 1-minute charts for more information.
The DMA_H called for a down-turn on 7/14/21, but it too was congestion that followed.
To get a long-term perspective, let's look at the various positions called for by the consensus of timeframes.
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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. It not only has my DMA_H predictions, but has the PHW indicator whic allows me to see which stocks are the most tradable. The indicators are sorted in this view to allow you to see the highest (most tradable) stocks with the highest PHW . Notice how much red is on the chart. This often happens at market tops.
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. BTW, I'm up 147% for the year, so far.
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!
TSLA (my favorite stock) has been moving sideways to slightly upward for the past few months, but is slowly moving upward. Friday it put in a down day which looks like it is rolling over. Could be going for the DMA Midline which lies at 677. I'm hanging in there with Cathy Wood and anticipating her prediction of 4,000 for this stock. Every time it goes lower I buy more shares. FYI the purple line is the S&P for comparison.
ADBE looks to be continuing upward. However, the DMA_H has turned purple below the zero-line which portends movement downward. Gold is still on top in the DMA, but not by much. If this one goes down I'm a buyer.
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Gold
Gold gave us a short signal on 8/6/21 as it dropped 47 points in one bar. Tonight the market is open and it has dropped again, almost down to the 23.8% FibLine reaching a low of 1677. I am still expecting a new high of 1,900 to 2,000 as BitCoin goes up it seems that gold follows.
Bonds
Bonds moved down sharply yesterday, hitting the DMA Midline. I'm thinking they will rebound from there, giving us an up-day on Monday. The DMA is still gold on top, but the DMA_H is sluggish, though it shows gold, meaning an up-day to come.
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. DISCLOSURE.
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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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