8 May 2015 - Another Good Example

Today was another good example of the lagging condition we had been talking about the past few months, weeks, days.  I had a good feeling the ST would turn a day before they usually do due to the impulsive and accelerating nature of prices developing recently.  Today the signal had turned UP on the ST by market open and accelerated into OB territory.  The only way I know how to safeguard against these volatile moves is to go into smaller and smaller time-frames to enter when price is accelerating and exit when signals are also exiting OB/OS conditions. 

I know I am sounding like a broken record, but what has been said and what is being said now is all true.  With all these zigzagging it is guaranteed to be very hard to trade as there is no clear direction in price.  The only thing to rely at this point is the MT on a longer term trend, but this of course will take time to confirm, which for most of the readers is not too good since a more accurate turn or close to it is needed.

It looks like for the pattern we currently have that more upside is needed to new highs.  But I remind many that I am biased to being bearish even though we are still making new highs month after month.  So I am trading any weakness to the downside and out of the position on rallies.  In the case that we are wrong with the count however the indicator should come out of its OB position as a confirmation.

MT: UP
ST: UP
PA: UP