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Our Equity Scanner now returns Bearish/Bullish MA crosses, All Bullish/Bearish MAs (10 over 20 over 50), and candles closing near 50 MA.

These will run each night on the daily scan and on each of the weekend scans, weekly and Monthly runs.

Current settings are 10/20/50.

More blog-posts will follow describing all the changes and updates that have been made to the equity-alerts.

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The most important aspect of "Perfected" vs "Imperfected" TD Buy & Sell Set Ups is the idea of "exhaustion of current trend".  "Perfected TD Set Ups" tend to signal exhuastion more accurately than do "Imperfected TD Set Ups".

 

In the top screenshot, a "Perfected TD Sell Set Up " is demonstrated on the AAPL chart (despite the weekly candle 8 being higher than the sell signal of candle 9).

 

The rules for "Perfected TD Set Ups" include the following:

  • HIGH of candle 8 OR 9 must be greater than BOTH of the HIGHS of candles 6 and 7 for "Perfected TD Sell Set Ups" (trend has been up).
  • LOW of candle 8 or 9 must be less than BOTH of the LOWS of candles 6 and 7 for "Perfected TD Buy Set Ups" (trend has been down).

 

In the bottom screenshot, an "Imperfected TD Buy Set Up" is demonstrated on the weekly AAPL chart (neither candle 8 nor candle 9 went lower than the LOW set by candle 7 in late January).  This imperfection is highlighted by the black Xs by our indicator (black Xs stop printing once price "perfects" the Set Up).

As you can see, even though the completed "TD Buy Set Up" (highlighted by the black arrow on candle 9 by our indicator) bounced the price for a number of candles (though failed to close above TDST line highlighted by red dots by our indicator), price returned the lows of this TD Buy Set Up a short while later in order to "Perfect" the series....i.e....the downtrend wasn't "exhuasted" despite a TD Buy Set Up showing up as completed.

 

Now there are many interesting trading strategies that can be built around the patterns of these perfected vs. imperfected TD Set Ups (and we'll likely cover some we've seen in coming blog posts) but the KEY Takeaway is the idea of being wary as a trader of the Tom Demark Sequential Indicator that sometimes imperfected TD Set Ups are less likely to signal exhuastion and reverse the current trend. Yes, perfected TD Set Ups can also fail to signal trend exhuastion BUT they are significantly more accurate in doing so than are imperfected TD Set Ups.

 

Check out our indicators section of our website if you'd like a script that highlights these imperfections in TD Set Ups as price action unfolds.  (black Xs in 2nd screenshot...dissapear once Set Up gets "perfected").

 

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Weekly 9 did call a top (at least momentarily) and kicked off a TD Buy SetUp to the downside on the daily chart.  Currently on a 6 of 9.

We expect the Daily TD Buy SetUp to close @ or near the orange line in the screenshot.  Finishing the month below there will continue the bearish TD BuySetup Series for the Monthly Chart(would make candle 4).

Price usually trends in the direction of the larger time frame Series so that should be the expectation....price should try and continue that Monthly TD Buy Series.

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BITTREX:XMRBTC -1.38% finds itself in a similar spot as the last few times it found a bottom (see clouds). 

BITTREX:XMRBTC -1.38% very rarely makes it to a completed "TD Buy Set UP" for the weekly time frame. In fact, it has historically bottomed in week 7 (which we're in currently) just as it makes a bearish fall beneath the 50MA. 

The last 2 weekly 7s (had you bought the bottom) returned 200% and 250% respectively from top to bottom. 

Below is a snapshot of the same chart for daily time frame. If you look closely...you'll see that each of the clouds (weekly 6/7 bottoms) contain completed daily TDBuy Set Ups. What did Monero just complete a couple days ago? A TDBuy Set Up. 
Daily Time Frame for XMR/BTC
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Above screenshot shows $PALL completing another Daily TD Sell Setup Series.

Palladium daily 9 alert came across our commodity screeners tonight.

We're highlighting it because it's potentially the 3rd TD 9 SELL to call a lower-high for the Daily timeframe (red x's drawn).

A top forming here (see the dramatic 1 day drop following the last 9 SELL signal) would support the Monthly Buy Set Up series continuing its count (currently on a red 4) towards 9 candles.

PALL making a new relative high above 100$ would nullify this TD 9 SELL signal.

 

Disclaimer: we don't currently have a position in $PALL and this isn't financial advice.

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The above screenshot shows Visa on a 9 for a Monthly TD Sell Set Up.

While browing the results from our weekend scans we came across Visa trading in its 9 candle for a Monthly TD Sell Set Up.

The parabolic nature of the advance this stock has undertaken the past year and half really tipped our interest even more.

Digging deeper, we can also see next week it will be on a weekly 9 for a Weekly TD Sell Set Up (similar to Nasdaq).

What are we looking for? 

Even though the monthly 9 candle has started to look like a potential reversal candle, we'd still like to get confirmation from the weekly chart next week in the form a bearish reversal candle on the 9 candle for the weekly TD Sell Series.

If next week is bullish and closes near the top of its candle we'd have to wait until the close of this monthly candle in order to get some form of confirmation that its at least an itermediate term top.

 

If you'd like to be alerted to opportunities such as this EVERY SINGLE weekend...check out our Equity Subscription Service.

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In a folllow up to our previous blog post regarding the weekly 8 on the Nasdaq, you can see from the above screenshot that SPX just completed its 8 of 9 candle for a TD Sell Set Up.

The Bull case:

  • Weekly 9 candle makes a higher relative high next week during week 9 of the series (marked orange line)
  • June manages to close its candle higher than 2713 which would break the current TD Buy Set up series (started back in March).
  • July Monthly trades higher than June (would be candle 2 of a TD Set Up series) setting up bullish environment for remainder of year.

Bear case:

  • 2802 relative high isn't surpassed and the weekly 9 turns into a reversal candle...calling another top for SPX.
  • Weekly 9 reversal candle sends the June candle closing below 2713.
  • 5 more months of SPX downside/sideways action until completion of the TD Buy Set Up series.
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Above screenshot is a snapshot of the Monthly TD situation for SPX.

Once again...

Bull Case:

  • Weekly 9 makes new relative high above marked orange line (2802ish)
  • June follows by closing above red line (2713) leading us into a Green 2 in July for the Monthly count and a likely continued bull market rally

Bear Case:

  • Weekly 9 fails to make new high above orange line (2802ish) turning into a bearish reversal candle
  • June closes below red line (2713)
  • 5 more months of downside to complete TD Buy Set Up series. (likely falling to at least 50 MA around 2235)
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The above screenshot is a snapshot of the recent price-action for the Nasdaq index on a weekly timeframe.  

As you can clearly see, we're currently on a weekly 8 of 9 in a TD Sell Set Up.  Coincidentally, the index is also on a Monthly 8 of 9 in a TD Sell Set Up.

It's very likely that these TD Sell Set Ups will complete their 9 candles and end as "Perfected" TD Sell Set Ups.  The question becomes, will they be significant and potentially mark an impending reversal in prices?

Despite the weekly Sell Series having already been perfected (check out our Education section or future blogs on perfected series), we remain bullish the indices through next week (week 9 of the series) and then likely lean cautious.

The daily TD Sell Set Up completed yesterday was ignored and prices have begun a clean TD Countdown phase on the daily chart for the Nasdaq.  There is a good chance this countdown phase continues through this week and next and gets close to its completion of 13 candles.

After the expected bullish week 9 of the weekly TD Sell Set Up Series....we feel there are likely 2 possible scenarios:

1) Prices ignore the completed Sell Series (has happened a lot in the run-up of prices the past couple years) and the weekly chart kicks off into a Countdown Phase strongly into July (Month 9 of the monthly Sell Series) and through the start of August.  What would follow is AT LEAST a small price pull-back/consolidation.

2) The weekly 9 ends up marking a medium-term top that doesn't get taken out until late fall/early winter.  This would entail the monthly still likely finishing as a perfected 9 in July and then 1-4 months of a small, low volaility pull-back in prices.

Still a little early to be confident but the rest of June/July should tell us a lot about prices for the Nasdaq for the rest of the year.

 

Disclaimer: This is not financial advice...trade/invest at your own risk.

 

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The screenshot above shows the price of oil on a monthly time-frame with our TradeThe9s Sequential Indicator overlaying it.

If you look at the candle ending May 2018, it clearly demonstrates a completed TD Sell Set-Up (marked by the 9 with red arrow).  This TD Sell Set-Up also completed with a decently bearish reversal candle which can help validate the sell signal given off by the Tom Demark Sequential Indicator and lend confidence to traders taking on the short-play.

Why do we feel this particular TD Sell Set-Up is potentially very significant? 

If you look back to May 2011 and July of 2008, you will find that Oil also topped on TD Sell-Ups for a monthly timeframe.  Oil would go on to fall nearly 80% for the remainder of 2008 and 35% in 4 months in 2011.

Will this Monthly 9 have the same effect on the price of oil? (price has already fallen 11% from top to bottom in the short-term)

We feel that if this June monthly candle fails to hold the 200 MA ( currently trading slightly under it) then prices will fall to short-term support at $60 and then likely go down to test the 50 MA somewhere in the neighborhood of 55$.  If this is the case, we could see a TD Buy Set-Up count begin... bringing along with it potentially 9 months of downside in prices.

If prices do hold the 200 MA for June and July candles, then look for a long entry on the Countdown Phase of the TD Indicator with the expectation of 13 more months to the upside. 

 

Disclaimer - we currently do not have a position in oil and this isn't financial advice but observation and education for the TD Indicator.

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This will be the first in a series of blog posts that covers the intrices of "imperfected set-ups".

In the screenshot above, the imperfected series in question is marked with black "x"s (see our indicators section if interested in purchasing said indicator).

In early February, the “QQQ” index completed a “Buy Set-Up Series” on the Daily-Chart (as signaled by the green “Buy Arrow” above the 9 candle).  This series was considered imperfected because neither the 8 or 9 candle managed to register the lowest price of the series.  Our imperfected indicator marks the lowest part of the series with a black x (upon completion of the actual series).  These x’s will remain on the chart until price comes down to that price-level and “perfects” the series.

In order for a completed set-up series to be considered “perfected”, the 8 or 9 candle must register the lowest price of the series (in a Buy Set-Up) or the highest price of the series (in a Sell Set-Up).

More on imperfected set-ups to follow on upcoming blogs.