Daily Demand Indicator
Mainly used in Bear Markets for timing Shorts…. Can be used to spot BIG Money entering the markets and possible tops when markets are making new highs
Right now we are looking for the indicator to spike above 1350 because that will be a sign of exhausted buying
Have a Great Weekend
Supply and Demand 20 day average indicator moved higher again today with the markets
We do have some major resistance between 365 and 400 so it’s something to keep an eye on
It’s now been 125 days since the last Daily Supply Spike on 15th November 2012
The longest run between signals was 140 days…. If we’re going to see another 140 day-er that will take us up to 7th June 2013
One thing that will point to a top is the Daily Demand Indicator indicator to spike above 1350 (same as daily supply indicator)
In BULL Markets the Daily Demand Indicator only has a hit rate of 35% and in Bear Markets it has a hit rate of over 85%…. For this reason it is mainly used in Bear Markets to time our Shorts….
When markets are making new highs like they are now the indicator can spot exhausted buying and a top
Right now…. We have been seeing some highish days of demand because of the nice up-days we’ve been having…. (864 and 867 days of demand)
We will keep an eye out for a spike above 1350
Have a great Weekend
A move to 68 for the $BPNYA (Bullish Percent) will signal a SELL within this point and figure chart
Price moved in to Os in April …… support found at 70….. Then we had a 3 Box Reversal back in to Xs (normal price activity)
Looking to see if we get the move back in to Os again….. 3 Box Reversal will see us at 70 and the SELL signal at 68
The move to 68 could be the start of the pullback we’ve all been waiting for
Supply and Demand 20 day average indicator still has some resistance from previous highs
It’s demand until proven otherwise
The Supply and Demand 20 day average indicator is still at a level of resistance from a down-trend line
Keep an eye on it because it could be our first sign of some weakness to come
Supply and Demand 20 day average indicator
It’s still demand until signal moves below the zero line….. When that will happen is anyone’s guess
It’s now been 121 since the last Daily Supply Spike on 15th November
The longest trading days between signals is 140 days …. From 25th August 2010 to March 15th 2011
Sit tight and wait for the next opportunity
We now have another way to trade the markets
After we see a supply spike above 1350 within the daily supply indicator, We wait and scan again going in to the close on the next trading day…
1st Trade - We purchase SPY CALL Options and hold for no longer than 5 trading day using contracts at least 2 Months out from expiration
2nd Trade - We BUY the ES Futures contract 6 Months out from expiration
By trading the ES Futures we are able to capture most of the big moves within the markets …. Or to put it simply “letting the profits run”
This is a massive advantage now…. I can’t wait to try it out with real $$$$$$s
One other thing…. If we had traded off the November 15th 2012 Daily Supply signal using the ES we would of held the position until April 17th 2013 ….. a 192 Points Profit
Hope you all had a great Weekend
