Top Advisors Corner

Tim Ord: The Ord Oracle - February 5, 2015

Tim Ord

Tim Ord


Monitoring purposes SPX: Long SPX on 2/3/15 at 2050.03.
Monitoring purposes GOLD: Gold ETF GLD long at 173.59 on 9/21/11
Long Term Trend monitor purposes: Flat 


Its hard to pick the time when this sideways consolidation would end but our statistics suggested it ended at Monday’s low.  A couple of things we want to point out on this chart is that the market only retraced 38.2% of the rally from the October low and suggests the current consolidation is at the half way point of the move up which give a target to 226 on the SPY.  The top window is the McClellan Oscillator which has been making higher highs and higher lows (definition of an uptrend) while the SPY has made lower high and lower lows and suggest the break on the SPY will be to the upside. SPY gapped up yesterday and market may try to test gap (gap near 202.5) before heading higher.  Our up and down volume indicator and advance/decline indicator remain on bullish crossovers. Long SPX on 2/3/15 at 2050.

The bottom window is the NYSE advance/Decline line.  Longer term bearish signs can be triggered when the NYSE makes higher highs and the NYSE advance/decline line makes lower highs.  It’s a longer term bullish sign when the NYSE makes lower highs as the NYSE advance/decline line makes higher highs suggesting at some point the NYSE composite will hit new highs; and is what we have now.  NYSE advance/Decline line broke to new highs yesterday and the NYSE composite is still below its high.  The top window is the McClellan Price Oscillator which hit a higher high then than the previous high while the NYSE composite made a lower high suggesting at some point the NYSE will make a higher high.  Next window down is the NYSE Volume Oscillator which also has made a higher high and suggests at some point the NYSE composite will make a short term higher high.  The price and volume internal statistics are getting stronger in the market. 

It’s a bullish sign for both gold and gold stocks if gold stocks are outperforming gold.  The GDX/GLD ratio shows that relationship when GDX/GLD ratio is rising.  The bottom window is the GDX/GLD ratio which hit a higher high than the previous high and GDX (so far) has made a lower high; suggesting at some point GDX should break above its previous high and keeps the short term trend bullish.  The pattern that appears to be forming on GDX is a Double Head and Shoulders bottom when the double head is the November December lows.   This potential Head and Shoulders bottom has an upside target near 27.50 range.  The Neckline lies near 23 and a “Sign of Strength” should be seen through this area to help confirm the Head and Shoulders pattern. We are long GDX on 1/6/15 at 20.47.
Long NG at 5.14 on 10/8/12.  Long GDX 58.65 on 12/6/11. Long GDXJ average 29.75 on 4/27/12.  Long GLD at 173.59 on 9/21/11. Long PPP at 7.65 on 8/3/11.  Long YNGFF .44 on 7/6/11.  Long EGI at 2.16, on 6/30/11. Long GLD at 147.14 on 6/29/11; stop 170 hit = gain 15.5%.   Long LODE at 2.85 on 1/21/11. Long UEXCF at 2.07 on 1/5/11.   We will hold as our core position in AUQ, CDE and AUQ average of 8.25.  

Tim Ord,
Editor
www.ord-oracle.com

For examples in how "Ord-Volume" works, visit www.ord-oracle.com.   New Book release "The Secret Science of Price and Volume" by Timothy Ord, buy on www.Amazon.com.