Analysis
Fri 5/17/13
Mov Avg-Exponential Indicator:
Conventional Interpretation: Price is above the moving average so the trend is up.
Additional Analysis: CAUTION: The market trend has changed direction. Now the trend is UP!
Mov Avg 3 lines Indicator:
Note: In evaluating the short term, plot1 represents the fast moving average, and plot2 is the slow moving average. For the longer term analysis, plot2 is the fast moving average and plot3 is the slow moving average
Conventional Interpretation - Short Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Short Term: The market is EXTREMELY BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average.
Conventional Interpretation - Long Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Long Term: The market is EXTREMELY BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average.
Bollinger Bands Indicator:
Conventional Interpretation: The Bollinger Bands are indicating an overbought market. An overbought reading occurs when the close is nearer to the top band than the bottom band.
Additional Analysis: The market appears overbought, but may continue to become more overbought before reversing. Given that we closed at a 45 bar new high, the chance for further bullish momentum is greatly increased. Look for some price weakness before taking any bearish positions based on this indicator.
Volatility Indicator: Volatility is trending up based on a 9 bar moving average.
Momentum Indicator:
Conventional Interpretation: Momentum (22.10) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is UP. The short term trend, based on a 9 bar moving average, is UP. Momentum is in bullish territory.upside move is likely. And, the market put in a 45 bar new high here. More highs are possible.
Rate of change Indicator:
Conventional Interpretation: Rate of Change (1416.76) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is UP. The short term trend, based on a 9 bar moving average, is UP. Rate of Change is in bullish territory. And, the market put in a 45 bar new high here. More highs are possible.
Comm Channel Index Indicator:
Conventional Interpretation: CCI (666.67) has crossed into the bullish region, issuing a buy signal. CCI will signal liquidation of this position when the CCI value crosses back into the neutral center region.
Additional Analysis: CCI often misses the early part of a new move because of the large amount of time spent out of the market in the neutral region. Initiating signals when CCI crosses zero, rather than waiting for CCI to cross out of the neutral region can often help overcome this. Given this interpretation, CCI (666.67) has crossed above zero, issuing a signal to close short positions and initiate long positions. Confirming this bullish outlook, the market has put in a 45 bar new high here.
RSI Indicator:
Conventional Interpretation: RSI has issued a bearish signal (RSI is at 97.67). When RSI crosses above the overbought line (currently set at 80.00) a sell signal is issued.
Additional Analysis: RSI is in overbought territory (RSI is at 97.67). However, the market may continue to become more overbought before a top is established, particularly given the 45 bar new high here. Look for a downturn in RSI before taking any bearish positions based on this indicator.
MACD Indicator:
Conventional Interpretation: MACD is in bullish territory, but has not issued a signal here. MACD generates a signal when the FastMA crosses above or below the SlowMA.
Additional Analysis: The long term trend, based on a 45 bar moving average, is UP. The short term trend, based on a 9 bar moving average, is UP. MACD is in bullish territory. And, the market just put in a 45 bar new high here. Look for more new highs.
Open Interest Indicator: Open Interest is trending up based on a 9 bar moving average. This is normal as delivery approaches and indicates increased liquidity.
Volume Indicator:
Conventional Interpretation: The current new high is not accompanied by increasing volume, suggesting that the current move lacks broad participation. Look for a retracement soon.
Additional Analysis: The long term market trend, based on a 45 bar moving average, is UP. The short term market trend, based on a 5 bar moving average, is UP.The current new high is not accompanied by increasing volume, suggesting that the current move lacks broad participation and the market may be overbought. A retracement is possible here.
Stochastic - Fast Indicator:
Conventional Interpretation: The SlowK line crossed above the SlowD line; this indicates a buy signal. The stochastic is in overbought territory (SlowK is at 100.00); this indicates a possible market drop is coming.
Additional Analysis: CAUTION: The long term trend has changed direction. Now the long term trend is UP! The short term trend is UP. Even though the stochastic is signaling that the market is overbought, don't be fooled looking for a top here because of this indicator. The stochastic indicator is only good at picking tops in a Bear Market (in which we are not). Exit long position only if some other indicator tells you to.
Stochastic - Slow Indicator:
Conventional Interpretation: The SlowK line crossed above the SlowD line; this indicates a buy signal.
Additional Analysis: CAUTION: The long term trend has changed direction. Now the long term trend is UP! The market looks strong both long term and short term. The SlowK is at (65.45). A good upward move is possible without SlowK being overbought.
Swing Index Indicator:
Conventional Interpretation: The swing index has crossed zero, identifying this bar as a short term pivot point.
Additional Analysis: No additional interpretation.
Important: This commentary is designed solely as a training tool for the understanding of technical analysis of the financial markets. It is not designed to provide any investment or other professional advice. | 
