Top Advisors Corner

Tim Ord: The Ord Oracle March 22, 2017

Tim Ord

Tim Ord


SPX Monitoring purposes;  Short on 3/21/17 at 2344.02
Monitoring purposes GOLD: Sold GDX at 24.33 on 2/22/07 = gain 20.15%; Long GDX on 12/28/16 at 20.25.
Long Term Trend monitor purposes:  Short SPX on 1/13/16 at 1890.28 


Today the RSI of the SPX closed below 50 with a closing of 44.61.  Generally when the RSI is below 50, the market is in a downtrend.  The light pink area represents times when the RSI is below 50.  Today’s plunge in the market marked the first time since November when the RSI fell below 50.  We will look to cover our short SPX position when we see panic in the tick and VIX.  Short SPX on 3/21/17 at 2344.02.   

The bottom window is the McClellan Oscillator.  Generally when the McClellan Oscillator is below “0” a downtrend in the market is the norm.  Today’s McClellan Oscillator closed at -112.82.  Bottoms in the market form when panic is present.  The VIX helps to identify panic with a strong rise.  Today’s 1.24% drop in the market did not even turn up the Bollinger bands, showing little panic in the VIX.  The Ticks also help to define panic in the market.  Large down tick readings less than -300 are common at panic lows in the market.  Today’s tick close came in at +160 and not showing panic at all.  With few signs of panic in the market it would appear the decline has further to go. Ask for free 30 day trial.

Above is the daily GDX with Up down Volume % with 10 period moving average and Advance/Decline % with 10 period moving average.  Yesterday’s report showed both indicators using the 25 period moving averages which produce less whipsaws because of the longer moving averages.  I might add that the 25 period moving average indicators are still showing a bearish divergence.   The Advance/Decline % with 10 period moving average likely will push higher above “0” when it updates later tonight and a bullish sign; but notice back in December high it did also push above “0”, then failed.  Same thing occurred with the Up down Volume % so we are being careful here.  The top window is the RSI and if GDX pushes higher tomorrow again than we may consider a long position.  The bottom window is the GDX/GLD ratio which is showing a bearish divergence. Picture is not ideal. Timer Digest has us ranked #1 in performance for gold over the last 12 months.  Sold GDX at 24.33 on 2/22/17 = gain 20.15%; Long GDX on 12/28/16 at 20.25.

Tim Ord,
Editor

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