Almost there: Put/call ratio=1.10 and T2108=19; Dollar bottoming?

GMI3/6
GMI-21/9
T210819%

With a high put/call ratio and a low reading of T2108 the bottom of this decline could be near. The daily 10.4 stochastics of SPY and DIA are almost below 20 but the QQQ is still too high, at 30.  A large down day on Tuesday (predicted by tonight’s futures) may bring all of these indicators to extremely oversold levels. Meanwhile it is nice to be safely in cash in my trading accounts. Why did I go to cash last week? Because the few buys I had recently made acted weak after their break-outs. In a healthy market break-outs should move up quickly. David Ryan has written that many of his best trades gave him a profit from day one. If I buy a stock at the proper pivot point, if the stock does not rise the set-up has failed and I exit.

For what it is worth, the huge recent black volume spikes in the chart of the dollar index below indicate institutional buying and suggest the dollar may be bottoming. Higher interest rates would support the dollar.

 

 

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