There’s Gold In That Soup
It has been pointed out in this space before that it pays
to check TradingMarkets Futures Indicators Page for indications of market
direction or potential market reversals. September Dow futures
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a contract that very often mirrors the cash Dow Jones Industrial Average that
underlies it, registered a
Turtle Soup Plus One Buy signal, indicating that both the futures and the
cash index could make a reversal at a recent critical low.
The Dow initially sold off on concerns that an
unexpected fall in the Producer Price Index (PPI) could be a signal that the
economy is even weaker than originally believed and that we could be
entering a period of deflation, a cycle of lower prices, lower demand, and
economic contraction. But upon reaching yesterday’s low — and the Turtle
Soup Plus One Buy trigger at the July 24 low — the market reversed. The Dow
has rallied an impressive 225 points off the lows of the session.
The Dow is up 109 at 10,408, the S&P 500 is up
6.43 at 1190.19, while the Nasdaq is down 7.78 at 1956.35.
A strong collective indication that the market had
the potential to reverse today were the three up signals from the Market
Bias Indicators Page. These signals can be found on both the Futures and
Stocks Indicators pages. Any one signal here provides an edge pertaining to
market direction. When three or more signals are pointing in the same
direction, there is a much higher-than-average chance that the broad market
will follow through in the direction indicated.
To learn more about the Market Bias Indicators and
and a real-life example of how the were used to catch the market at its
recent swing high around August 2, make sure to see this weekend’s Trade of
the Week on TradingMarkets World. In this week’s addition, Greg Che, who is
doing advanced research on VIX indicators available on the Market Bias
Indicators page with TM CEO Larry Connors, describes recent trades he made
to sell short the market using a confluence of these signals.
The component with the highest relative strength
ranking (price performance) on the Dow is leading blue chips higher. While
its RS ranking in the 70s is not impressive nor enough to propel the Dow
higher for long, Caterpillar
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Also trading at new highs and pointed out on
TradersWire Insights prior to moving more than $1 to its new record, Johnson
& Johnson
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2% at 54.94.
Downgrades on software outfits Oracle
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Siebel
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is down 6%.