Top Advisors Corner

Tim Ord: The Ord Oracle March 12, 2019

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SPX Monitoring purposes; Long SPX on 3/8/19 at 2743.07.
Monitoring purposes GOLD: Long GDX on 1/29/19 at 21.96.
Long Term Trend SPX monitor purposes; Long SPX on 10-19-18 at 2767.78

The VIX trades opposite the SPY. It's common for the VIX to lead (in the opposite direction) the SPY. So far, divergences between SPY and VIX have not shown up, suggesting that the current trend, which is up for the SPY, should continue. In the far right corner, there is a micro-window for the SPY and VIX; just “eyeballing” the price movement, it appears VIX is closer to the previous lows than SPY is to its previous high, showing VIX is outperforming to the downside, a bullish sign for the SPY. If VIX manages to hit a new short-term low in the next couple of days, keeping on track would imply the SPY will hit a new short term high. Also, VIX remains below +16, which is bullish for the intermediate term.

The top window is the 100-hour moving average of the TICK. In uptrends, the 100-hour TICK stays above “0” - the current reading is +10.17. The 100-hour TICK gained ground from yesterday, a bullish sign for SPX. The bottom window is the 50-hour moving average of the tick. Since it moves faster than the 100-hour TICK, the chart is not as neat. It works the same way as the 100-hourly tick, but moves above and below “0” more frequently; right now, it's above “0” and bullish. Yesterday, we pointed out that it’s common for the TICK to lead the SPX. The cumulative tick (middle window) is testing its September high, suggesting that, at some point, the SPX will test its September high - the question is simply when. There is a possibility that the current rally could continue to the September highs, but we will have to see what happens at the early March highs. Long SPX on 3/8/19 at 2743.07.

The second window up from the bottom is the 50-period moving average of the Up Down Volume. Readings above “0” are a bullish sign for GDX. Also bullish is the fact that Up Down Volume has made higher highs and a bullish divergence for GDX shows the market getting stronger. The next window up is the 50-day moving average of the Advance/Decline. Readings above “0” are also a bullish sign for GDX. This indicator has made higher highs, showing that the market is getting stronger. As long as both Up Down volume and Advance/Decline indicators remain above “0,” the uptrend should continue. Long GDX on 1/29/19 at 21.97.

Tim Ord,
Editor

www.ord-oracle.com. New Book release "The Secret Science of Price and Volume" by Timothy Ord, buy at www.Amazon.com.

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