Some of my readers will recognize my previous work from the Reversion to the Unified Mean (RUM) Wave blog. I wrote it in relative anonymity for a couple years. That work can now be found here.
Today the market opened higher, then wandered lower and spent a lot of the day moving sideways after that, only to run up into the close. It seems to me that the market is moving sideways consolidating before another move higher. The RumWave chart is getting closer to my preferred "buy" signal. Another down day tomorrow would likely put us at or near a strong rebound point, but the market could definitely take off from here. For the purposes of the scoreboard I will begin tracking the RumWave score from today until I give a sell recommendation, as today was the day I sent an email out to my friends giving my recommendation to buy an index tracking ETF of their choice (I play a 3x leveraged DJIA ETF), so long as they were willing to accept the increased risk of this trade. I intend to hold the position for about 10-20 business days.
The daily scores:
About the only thing holding the overall market back seems to be the small caps. If they would find a bottom I think we would be off to the races. The scores on my chart (above) are showing a lot of green, but that pesky DJIA Daily Chart score (top row of numbers) is still a little troublesome. We'll see what kind of catalyst ends up being the match that lights the bucket of gasoline that the bulls have been amassing.
GOOD LUCK TOMORROW!
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