Continuing Higher

Strong bullish showing Friday!

Friday's action was great for those that were long (make money if the market goes up).  The RumWave has been suggesting a bullish run and continues to favor further moves to the upside throughout the first half of August.  I will continue to hold my 3x DJIA ETF until the RumWave produces a sell signal.

 There wasn't as much cooling of the calculated scores (above) on the 4 hr / Daily chart as I would have liked.  Frankly I was a little surprised that the market chose Friday to run up.  But that is why I rely on the RumWave to tell me which way the market will probably go over a longer period (10-20 days).  The predictability of that time period in my backtesting (as far back as 2005) is far, far more stable than trying to call daily market direction.

DJIA 4 hr Chart

 The 4 hr chart (above) is still encouraging from a bullish standpoint.  The %B and Slow Stochastic are not at extreme levels, which I interpret as bullish.

DJIA Daily Chart

The Daily chart (above) also has some high oscillator readings, but they are not extreme yet.  On a strong bullish run, it is not unusual to see the oscillators stay at relatively high levels for the entirety of the wave.

GOOD LUCK NEXT WEEK!