ETF Prophet

The VIX has continued its move higher on conflicting Dubai and retail sales reports and interpretations, leaving the Russell 2000 (IWM) down nearly a full percent.  Down Volume is slightly outpacing Up Volume, Cumulative Tick is very negative and the Advance – Decline line has been vacillating in direction while maintaining a negative net disposition.  [...]

This week should provide a clearer view of the Dubai World default fallout. Based on the results of the latest VXX PDQ update the technicals are poised for further market weakness.Note that most of the Long signals are 2 to 3 days old and the median N days value for the current longs is about [...]

(Click Image to Enlarge/ Glossary) In spite of the late week Dubai World induced rout, equities put in a mixed performance depending where you looked, and losses were well contained on balance. For instance, even as the majors finished marginally lower (SPY -0.2%), the “Safety Trade” Large-Cap Style Stocks (PWV +0.5%), Utilities (XLU +1.3%), Consumer [...]

Dear Subscriber, After a long dry-spell, the VIX:VXV indicator finally paid on the Dubai World catalyst, and now the VIX is equally stretched to the high-side after a near 21% single-day gain, possibly lending credence to our strong positive mean reversion signal for Monday.  In my view, the market had set itself up for just [...]

Most traders would be better off spending at least a weekend’s worth of reflection trying to decide how they should trade. This includes figuring out the right tools that should be used (indicators or strategies), the time frame that should be employed (day,swing, long-term), and the main vehicles that they should trade (stocks, ETFs, futures). [...]

The Super-Smoothed Double Stochastic (DVDS) will be available today for free on Tradestation. enjoy! dv Also added today:

It’s always gratifying to know that somebody is actually trading the VIXEN setup and one of my loyal readers, Old Crow, has forwarded 2 of his recent forays using his own version of the setup. As with all my VIXEN posts, Old Crow has shown these trades on the Schwab Street Smart Pro platform.He uses [...]

As you might have guessed last night, the dollar received a big boost on the Dubai news and commodities have been inversely crushed.  But most of the damage had already largely been done, and the bulls have come in to clean up the Holiday trimmings, erasing nearly half of the early losses.  Volume is up [...]

Dear Subscriber, The market managed to put in a decent day Wednesday in-spite of a poor performance by the Financials.  As much as I'd like to shake these mixed readings, they remain in force.  Although I was personally expecting some follow-through  holiday strength during the abbreviated Friday session, I see very negative action overseas this [...]

In additional to all else, I am very grateful to all my web supporters, trading mentors and partners, fellow bloggers, and chat confidants. All the Very Best to You & Yours

coming soon!

We are seeing very strong Tick action and healthy Up Volume and Advance – Decline lines at the mid-day (although the AD line slope is easing up). The only small exception is the VIX, which, after threatening to break twenty, has ticked back higher. I’d also like to see our Market Sentiment indicator performing better. [...]

  **as of 11/18/2009**

With yesterday’s volume at about 60% of the daily norm I thought it might be a good time to review some of the basic VIXEN concepts and at the same time show the disparity between some of the large asset class ETFs relative to the VIX crosses.Shown above are the NYAD, Qs, IWM and SPY. [...]

The Livermore “Active Issues” Index is a new universal index methodology that can be applied to find the best liquid momentum stocks in any index. It is “bias-free” and is ideal for trend trading in all time frames. No fundamental data has been incorporated, only price and volume data and statistics. It can also be [...]

Dear Subscriber, The US markets shrugged off overnight weakness in Asia for a mixed close.  While price action was muted to slightly negative on the broadest indices, Energy and Health Care managed to post nice gains even as Financials and Industrials suffered to an equal extent.  Interestingly, the VIX also fell near its lowest levels [...]

One of the most important components of a good system is to have a low drawdown relative to its average return. Most traders make a concerted effort to pursue strategies with low drawdowns. In fact, people are so focused on drawdowns, that it is often detrimental. To me one of the most important things when [...]

Hi, for those with questions about the DVO please first read the thread on my site to learn more about the indicator and how it compares to the DVSC and DV2. Then you can ask new questions directly on the site. http://www.dvindicators.com/community/forum/?vasthtmlaction=viewtopic&t=26.0 cheers dv