Weekend Update - New Indicator

Introducing the "Leading Directional Indicator."  This indicator has aided me many times to anticipate changes in market direction, usually several days before the market starts to move.  There are times when it becomes a little oversensitive but those times are short lived.  When compared with the other indicators on this dashboard it can help to build a clear directional picture.

Current view of US market with previously identified entry points.

Market Dashboard - Indicator #2 is high

Primary Indicator #2 is reaching an inflection point, however primary indicator #1 is not.  I expect both to be in the red before a significant change in market direction occurs.

Market Dashboard - Trending to Slightly Overbought

The leading needle of Primary Indicator #2 is in the red.  Alone, this signal is not reason for worry, but it is worth noting.

Market Dashboard - Trending Zone

The current state of the market is Neutral / Trending.

New Look

Here is a new look for the blog!  These indicators are the ones I use to make decisions on entry points.  I have built them into meters so you can simply look at the needle position to see what I'm seeing.  Indicator #2 has two needles; we'll want to see them both in the red or both in the green before a major market change happens.  Also, the black needle will "lead" the grey needle.  The "super bull" needle is just that. If it ever gets pegged in the green the market is going to have a big move to the upside.  Enjoy!

No Status Change, just an update

No status change, still in..

I've noticed an increase in page views over the last couple days, so I thought I'd just post a quick update.  I have not changed my stops or opinion on the direction of this wave.  However, it has been choppy. My RUM Wave chart has taken a formation that I have not ever seen.  I reviewed the data back to 2006 looking for a similar pattern with no success.  Traditional market oscillators do indicate a bottoming in the very short term, so I'm comfortable leaving my stops where they originally were set.

Special hello to my friends in Dilbeek, Belgium.  You guys are one of the most frequent viewers of the RUM Wave blog!  Thanks for reading!