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- Signals of the Day – June 20th
Signals of the Day – June 20th
6.20.17
Well, that rally was short lived now, wasn’t it? The indexes fell right at the open and were never able to recover. The Dow finished with a loss of .29%, the Nasdaq -.82% and the S&P slid .67%. Crude also dropped 1.95% while gold rebounded and finished +.06% for the day. Even though we saw losses across the board on the indexes, we are still going to focus on three new buy signals this evening. The overall market mode is still overwhelmingly bullish. So let’s get to it.
The GMMA likes the new higher low that has formed on CRM.
CRM participated in the big tech sell-off last week, but it has since consolidated along support which happens to coincide with the 50 SMA, which makes a pretty strong confluence level. It is now pivoting off of that confluence level and is forming a new higher low, which are the ideal entry spots for trending moves. It is oversold as well, putting it in solid buying territory. Volume is still on the low side, but if we see volume pop, we may see a push on up to $90 on CRM in the near future.
The GMMA Reversal Strategy only generates Long signals and it uses tools from the original GMMA (GAMS and GA Separation), as well as Guppy’s Trend Volatility Line (TVL) Trailing Stop. This strategy looks to enter the market during pull-backs in a bullish trend. The GAMS system fires the signals on the pull-backs, while the GA Separation indicator is used as a filter to identify the trend. Guppy’s new TVL stop helps to maximize gains.
This signal is brought to you by the GMMA 2.0 trading module. The GMMA is the composite picture of 12 different Moving Averages and provides powerful views of trends. The expansion and contraction of the averages provide direction as to what stage a trend is in as well as the stability of the trend. The Guppy Multiple Moving Average indicator is designed to distinguish the behavior of individual traders vs. institutional investors. This difference in behavior is independent from the price behavior, but it is derived from price behavior. The structure of the GMMA shows the fractal behavior in the market and the way that fractals tend to repeat. The GMMA analysis relies on the relationships between each group of Moving Averages. Compression shows agreement while expansion shows disagreement. When the long term group is widely separated it shows strong investor commitment to the trend. When the two groups of averages are consistently separated it shows trend consistency because traders are not prepared to let prices retreat too far before they become buyers again. It’s a great piece of work and if you’re curious to know more, check out its literature here.
Next up, GPN.
GPN is testing support after recently making new highs. T3-S1 is looking for a new bullish move.
GPN had been rolling heading into June, setting new highs along the way. It has recently begun to pullback, but it has found support close to $89 and has hit the brakes on the downwards move. It has become oversold which puts it squarely in reversion territory. What we are looking for here is a temporary pullback and then jumping in prior to the reaction rally begins. If T3 gets this one right, we could see GPN head on back into the low $90’s before long.
This signal comes to us courtesy of the T3 Power Suite. The T3 strategies search for Reversion to Mean moves. The RTM method says that markets trend about 80% of the time and within these trends, there are pullbacks that create temporary oversold conditions. Our goal is to identify these pullbacks precisely at the moment they become oversold and then buy them just ahead of the bounce. We hold the position just long enough to capture the reaction move and take a profit.
Last but not least, PFE.
CPRM6 is looking for a pop on PFE.
While much of the market pulled back today, PFE scored a +1% gain after pushing through both the 200 and 50 period SMA’s yesterday! The importance of the continuation of that move cannot be understated. It has also broken through a bearish trend line that dates back to April. A trend line is a line drawn across two or more sloped points in the chart. Typically, the more touches a trend line has, the more valid it tends to be. We have two essential patterns from trend line breaks and reversals. As we can see, this trend had multiple touches along the way, giving this trend more validity. If this move continues, we could see it run up to test resistance at $34.
This signal was fired off by the CPS5 strategy which is a piece of the CPRM6 module. The Chart Pattern Recognition Module (CPRM finds the stocks with the strongest patterns in the market. CPRM6 also allows you to get pattern confirmation in either higher timeframes or lower timeframes – or both combined. CPRM6 will analyze all of the enabled timeframes in your profile and show you any recent patterns. For more info, check out CPRM6’s product page here.
That’s all for this evening. Will hit you back here tomorrow! Have a wonderful night and best of luck in all your trading tomorrow.
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About the Author Ryan Belknap
Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.