Top Advisors Corner

Tim Ord: The Ord Oracle October 28, 2015

Tim Ord

Tim Ord


Monitoring purposes SPX: Sold on 10/5/15 at 1987.05; gain 2.28%.  long SPX on 9/22/15 at 1942.74.
Monitoring purposes GOLD: Flat
Long Term Trend monitor purposes: Flat 


Both the 10 day TRIN and 15 day SPY/TRIN ratio have reached bullish levels suggests a decline in the market here is unlikely.  The SPY has broke above the Neckline of a Head and Shoulders top and so far is holding above that level.  Normally when a market reaches a resistance level, the market will back away quickly and that is not what is happening here.  The red vertical lines show when the 10 day TRIN and 15 day SPY/TRIN ratio reached bullish levels and all where at worthwhile lows. As you can see on the chart above we are currently at bullish levels again and suggesting the market is near a low even though the market has rallied.  It appears the public has sold into this rally as the TRIN has stayed constantly at a high level and high readings on the TRIN are bullish for the market.  FOMC meeting starts today and run into tomorrow and we may get a signal in this timeframe.  Interesting statistics; Going back 30 years, October 28 has been down 3 times.  The years ending in five have all been up going back to 1875.  There is a good change before the year is out market may see new highs.  Drop us your email address for free 30 day TRIAL, tim@ord-oracle.com.

The FOMC meeting ends tomorrow and short term volatility may present itself.  All the Oscillator we discussed yesterday along with the Advance/Decline have turned down today and normally trigger a bearish signal.  As pointed out on page one the SPY/TRIN ratio suggests a bottom is near by.  Seasonality is bullish until year end and therefore if there is a pullback here, we rather be long.  The blue vertical lines show when all the Oscillators turned down along with the Advance/Decline line and market reversed back up and with the SPY/TRIN ratio is bullish territory that may well happen here.    Sold long SPX on 10/5/15 at 1987.05 = gain of 2.28%;  Long SPX on the close of 9/22/15 at 1942.74.

Above is the daily chart for GDX.  The red lines are resistance lines and GDX is up against the lower resistance line now and it appears to be waiting to decide to break through or back away.  The pattern that is forming is a Head and Shoulders pattern where the Head is the September 11 low.  The Right Shoulders appears to be forming now.  The Two hour chart of GDX we showed yesterday looks a minor Head and Shoulders top where a pull back is likely and that potential pull back could form the Right Shoulders low of the bigger Head and Shoulders bottom we have out lined on the chart above.   If GDX starts to Head higher short term it would suggests pull back is not going to happen and we would look to get long.   If GDX does pullback, we will be looking for a bullish setup somewhere from 15.25 down to  14.00 range.  In both cases, the upside target will be near 19.50 range.  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.

Tim Ord, 
Editor
www.ord-oracle.com