Global Seven

24 September 2013

SHORT TERM COMMENTS UPDATED SEPTEMBER 26

Thursday...so we are waiting for a confirmed short term signal to short the Dow (S&P500 etc) but I found interesting the the DJIA/EUR ratio has signalled a sell...it is saying buy EURUSD and sell DJIA...take a look...www.investrac.com/blog/waiting-for-the-dow-to-confirm-sell-signal On Wednesday September 18 I wrote the following..."very intersting to see the DJIA in the up mode in the short term system yet it has given a medium term sell signal...also interesting to see XAU and HUI both declining on the short term system but both have given a buy signal on the medium term system. CRB Commodities index has indicated that it is going down in the short term..." I want to address the comment on the DJIA because there was a big setback on Friday and I want to show you why because of the VIX and S&P500...check it out www.investrac.com/blog/medium-term-sell-signal-for-us-equities

SCORECARD (Medium Tterm Vew) UPDATED AS AT FRIDAY SEPTEMBER 20

CRUDE +6,  CRB INDX +5, EUR +4,  DJIA +3, USDINDX  +2, GOLD +1, TBOND 0,  ....DJIA slipping....TBONDS remain most oversold and WTI CRUDE most overbought

Comparative Performance Against Strongest

Sectors measured against the strongest (CRUDE):FALLING> DJIA 1, EUR 1, CRB INDEX 1, GOLD 0, TBONDS 0, USDX 0

Comparative Performance Against Weakest

Sectors measured against the weakest (TBOND): RISING<  GOLD 36, USDX 100, CRUDE 100, DJIA 100, CRB INDEX 100, EUR 100

Medium Term Trend, 5 week Direction Indicator (DI) and 34 week Overbought (100)Oversold (0) Indicator (OBOS)

USD INDEX   trend falling ...DI declining...OBOS indicator falling 10.0...should be short
CRUDE            trend rising...DI turning down...OBOS indicator rising 99.8...waiting for short term bounce for an opportunity to sell
DJIA               trend rising ...DI declining...OBOS indicator now declining 93.1..RSI diverging...waiting for confirmed short term signal to sell
CRB INDEX    trend rising...DI rising ...OBOS indicator rising 95.5...waiting for short term bounce for an opportunity to sell
EUR                 trend rising...DI holding uptrend...OBOS indicator overbought 99.9...RSI diverging...should be long
TBONDS          trend declining...DI declining...OBOS indicator oversold 0.0...waiting for a buying opportunity
GOLD              trend declining... DI turned down...OBOS indicator oversold 0.2...waiting for buying opportunity

 

 The information contained on this website must be viewed as educational...no trading advice is intended. Global Seven has 7 components and they are measured against one another ...on the Scorecard a score of +6 means that the sector in question is stronger than the other 6...and 0 means that that sector is being beaten by the six...Comparative Performance Against Strongest shows the position of the other components as they fall with 0 being oversold ...conversely Comparative Performance Against Weakest shows the performance of the other componenets as they rise with 100 being overbought...for more information on how the model works click on to www.investrac.com/welcome-to-investrac Keep in mind that the system is based on daily data so is only valid for short term movements. And keep in mind this good advice from Grant Williams: "Tune out the noise and focus on the signal." You can be advised whenever a new blog is posted....just complete the "Contact US" tab.