DecisionPoint

June 2014

DecisionPoint

Copper - New PMO and Trend Model BUY Signals

by Erin Swenlin

The two cornerstone indicators for DecisionPoint analysis are the PMO and the intermediate- and long-term Trend Models. The DP ETF Tracker report, found in the DecisionPoint Trackers blog, lists not only percentage changes and PMO relative strength for the select ETFs we follow, it lists the PMO BUY and SELL signals. The signal table lists how long an ETF has been on a BUY or SELL signal and whether the PMO is rising or falling and for how long. I check these reports regularly to find the new PMO BUY/SELL signal flags that give me an opportunity to analyze a particular ETF which leads to Read More 

DecisionPoint

Money Market Weekly Cash Flow Shows Bullish Sentiment

by Carl Swenlin

One of the data sets we keep is Money Market Mutual Fund Weekly Net Cash Flow, published on ICI.org. It is a sentiment indicator that allows us to watch short-term sentiment, as well as sentiment trends. The histogram on the chart below reflects the weekly cash flow in billions, the red bars representing cash moving out of money market mutual funds, which is an expression of bullish sentiment, because it is assumed that much of that cash is going into stocks. The green lines represent cash flow into money market funds, an indication of bearish sentiment, negative for stocks. Read More 

DecisionPoint

Analyzing On-Balance Volume Indicators On Select Sectors

by Erin Swenlin

The DecisionPoint On Balance Volume (OBV) indicator suite consists of three related indicators: Climactic Volume Indicator (CVI), Short-term Volume Oscillator (STVO), and Volume Trend Oscillator (VTO). All of these indicators are derived from the basic OBV calculation.  On-Balance Volume was invented by the late Joe Granville. It is a basic analysis tool that is available for you to use on the SharpCharts workbench. An OBV index is created by adding or subtracting the day's volume to a cumulative total based upon whether the stock closes up or down in the day Read More 

DecisionPoint

Understanding Price and Moving Average Relationships

by Carl Swenlin

A useful and basic technique for deciding if a stock is bullish or bearish to observe the relationship of price to its moving averages. I use the 20EMA (short-term), 50EMA (medium-term), and 200EMA (long-term), and the stock is considered to be bullish or bearish in a given time frame depending on whether or not price is above or below the moving average. The chart below demonstrates how fleeting these relationships can be, but it is still a quick and dirty way to classify the status of a given stock. While there are probably more effective ways to Read More 

DecisionPoint

Intermediate-Term Indicators No Longer Congested

by Erin Swenlin

For some time, our intermediate-term indicators have been oscillating in a tight range. But since the breakout rally began, readings are now setting themselves apart. Let's look at a few charts from the DP Chart Gallery. First is the daily chart for the SPX. Price broke out above a rising wedge on this recent rally. An ascending wedge is a bearish pattern, so to get a bullish breakout from a bearish set-up is positive. The PMO is confirming this breakout rally by not just rising, but clearing from the crowded readings we had over the past few months. Also good news is that even though Read More 

DecisionPoint

Nasdaq 100, Health Care, and Technology Have Excess of PMO Buy Signals

by Carl Swenlin

The Precentage of Stocks on PMO Crossover Buy Signals is flashing a warning on three of the indexes we track in the decisionPoint Alert Daily Report. The Price Momentum Oscillator is a primary DecisionPoint indicator that generates short-term Buy and Sell signals when it crosses above and below its 10EMA. The chart below highlights a couple of examples. We also track the PMO Buy signals for each component stock in some market and sector indexes. From this we derive the percentage of stocks in the index that are on PMO crossover Buy signals, and this produces an Read More