For Friday, May 30th

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1917.60...  
Well, a 33.30 point SP gain in this current position in just about a week is beginning to look respectable, especially when most everyone was looking for a big market decline...
For Friday, a close below 1918.30 in the June SP futures would confirm a new main model sell signal...   
 
You may see a mid morning or mid day update tomorrow if the market rallies above the 1918.30 major VP which is just overhead...  today's high is 1918.00, just .30 points from the major VP of 1918.30...  considering the strength of this market, we're likely to see it trade through it, but then we'll see what this market does after hitting that price...  obviously, this market had no respect for the lower major VP, this is truly rare and it also illustrates the buying force behind this market, for now anyhow...  an aggressive trader could short this market at the 1918.30 major VP, of course using appropriate stop loss protection...
 
The NT (Near Term) indicator  (the red line)
The NT indicator has nullified yesterday's sell spike...  but, tomorrow is another day, this market is currently tip toeing through a minefield of VPs, both minor and major...
The LT (Long Term) indicator
The LT graph continues to look impressive...  no more sell spikes, and the purple line is now headed toward the red line...  although, the red line is also moving higher, this makes it more difficult for the purple to gain on it...  we'll see what tomorrow brings...
Directly below is a daily continuation chart of the SP futures since the beginning of 2013...  I want to point out the overhead line which the market is again touching as of today's close...  of course, there is nothing to stop this market from going higher and breaking out with great force...  but, I think it's definitely noteworthy to illustrate here for you to see...
The following are the current upside VPs for the JUNE SP...
minor - - 1884.00  (already reached)
minor - - 1888.70  (already reached)
minor - - 1896.70  (already reached)
MAJOR - - 1899.30  (already reached) and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
minor - - 1901.10  (already reached)
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1990.40  (no typo)
The June Gold futures
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1254.70...
We've been short gold for about 2 weeks and we already have a 40 dollar gain... life is good...
For Friday, a close above 1294.80 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
The LT graph shows an oversold gold market...  we have a major downside VP sitting at 1249.70...  today's low was 1250.90, close but not good enough...  maybe we'll see it traded down there overnight...  or, maybe today was the low and the VP is already slowing the decline...  interestingly, even though the market itself was lower again today, the purple line has turned slightly higher...  whether or not this is actually a meaningful bottom remains to be seen, but I think it's safe to say that the selling is now approaching at least temporary exhaustion...  an aggressive trader could buy this market right here, of course using appropriate stop loss protection...
...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90  (already reached)
minor - - 1269.30  (already reached)
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1124.10 
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Thursday, May 29th

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1908.90...  
For Thursday, a close below 1901.00 in the June SP futures would confirm a new main model sell signal...   
 
We never came even close to a sell signal today, although the market is currently trading well above all the nearby VP prices including a major VP, this has to be construed as bullish, at least for now...  while the market continues to show remarkable strength, we can see that the nearby VP grouping has stopped the rally at least for today...  if the rally resumes again tomorrow, then we could probably say farewell to these nearby VP points...  on the other hand, if the VP cluster begins to take a firmer hold as they typically would, then watch for a sell signal tomorrow...
 
The NT (Near Term) indicator  (the red line)
This market is not as overbought as the previous NT sell spike, but we did develop a sell spike today, nonetheless...  therefore, watch for possible weakness overnight and maybe tomorrow morning, as well before any rally resumes...  but, if the selling begins to intensify and a sell signal is also triggered, then we could well witness some additional undoing of this current rally...  the immediate warning sign here is the NT sell spike occurring while the market is above more than one VP point...  this has to be watched carefully...
The LT (Long Term) indicator
We also see a sell spike of sorts in the LT graph today...  while the blue line is already well above the red line and entering overbought territory, we can now see that the purple line merely "kissed" the red line yesterday and then fell back today...  for tomorrow, we'll see just how much muster this market really has...  also, take a look at how many upside VPs have already been reached...  this may very well be a powerful bull market, but nothing goes straight up or down in one direction...
The following are the current upside VPs for the JUNE SP...
minor - - 1884.00  (already reached)
minor - - 1888.70  (already reached)
minor - - 1896.70  (already reached)
MAJOR - - 1899.30  (already reached) and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
minor - - 1901.10  (already reached)
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1990.40  (no typo)
The June Gold futures
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1259.00...
For Thursday, a close above 1304.10 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
All indicator lines, including the red line, are now moving lower, although now beginning to enter the oversold zone...  also, keep your eye on the downside major VP for this market tomorrow at 1249.70, this is not much lower than where this market traded today...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90  (already reached)
minor - - 1269.30  (already reached)
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1124.10 
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Wednesday, May 28th

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1909.40...  
For Wednesday, a close below 1901.00 in the June SP futures would confirm a new main model sell signal...   
 
This market has now rallied significantly above a large number of both minor and major VP prices...  this illustrates the strength of this market for now...  it's typical to see some pull back after reaching such a broad cluster of VPs, but so far this market has not even blinked, this is very bullish...  my impression is that even if it does blink tomorrow, the pull back may only be very brief before new all time highs are again made...  nonetheless, weakness tomorrow could easily cascade into something more...  for this reason, the main model signal ought to be taken as seriously as any other previous sell signal...
 
The NT (Near Term) indicator  (the red line)
The NT indicator is still not yet overbought...  but, it's beginning to approach that overbought zone and appears to be setting itself up for a sell spike, possibly tomorrow, maybe Thursday...
The LT (Long Term) indicator
We now see both the purple and blue lines cross above the red line...  if you could see through the scatter of lines, you will notice that each time both the blue and purple lines crossed above the red line the market rallied for some distance...  it would be reasonable to suspect the same again this time around...  we could still see this market close lower tomorrow without triggering a sell signal...
The following are the current upside VPs for the JUNE SP...
minor - - 1884.00  (already reached)
minor - - 1888.70  (already reached)
minor - - 1896.70  (already reached)
MAJOR - - 1899.30  (already reached) and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
MAJOR - - 1900.90  (already reached) and must close below that price on Wednesday, May 28th to confirm a new main model sell signal...
minor - - 1901.10  (already reached)
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1990.40  (no typo)
The June Gold futures
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1265.10...
For Wednesday, a close above 1304.10 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
Finally, the gold market woke up from its deep sleep...  apparently, it opened its eyes, looked around, and didn't like what it saw...  so, it decided to go south for the time being...  keep your eyes on this market, it is now trading well within the downside minor VP zones...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90  (already reached)
minor - - 1269.30  (already reached)
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1124.10 
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Tuesday, May 27th

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1897.40...  
The U.S. markets are closed on Monday to observe Memorial Day...  as a wartime veteran myself, I salute and embrace each and every fellow brother and sister who now serve and have ever served in times past...  all gave some - some gave all... 
 
 
For Tuesday, a close below 1861.00 in the June SP futures would confirm a new main model sell signal...   
 
 I suggest you take a look at all 4 VP's clustered together at the current market price level...   we have three minor VP points and one major VP just .30 points above today's high...    in addition to the market being at all those VP points, we'll also have a gap on Monday, a time gap, just as important as a price gap...  a time gap has a tendency of changing market sentiment...  psychologically, it could break the bullish mind set, the momentum, just like a football team that takes a time out at a critical point in the game to break the opposition's momentum...  time gaps are real and very often have a real effect on these markets...  the futures could be higher on Monday while the U.S. markets are closed, and then trade lower into Tuesday...  but, we'll see what the market itself wants to do...
 
The NT (Near Term) indicator
This picture speaks for itself...  the buy spike was a solid one and it looks like it still has more room to go...
The LT (Long Term) indicator
We can clearly see that the LT graph is bullish, the blue line continues higher and the purple line is fast approaching the border...
The following are the current upside VPs for the JUNE SP...
minor - - 1884.00  (already reached)
minor - - 1888.70  (already reached)
minor - - 1896.70  (already reached)
MAJOR - - 1899.30 and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
MAJOR - - 1900.90 and must close below that price on Wednesday, May 28th to confirm a new main model sell signal...
minor - - 1901.10
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1992.70  (no typo)
The June Gold futures
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1293.00...
For Tuesday, a close above 1304.10 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
The blue, purple, and red lines are so flat lined, their values are all at zero or close to it...  this market remains in intensive care for now...  we know the gold market really isn't dead, but it just looks that way...  get ready for something to happen at some point...
 

 
The following are the current downside VPs for June gold...
 minor - - 1277.90
minor - - 1269.30
MAJOR - - 1262.00  and must close above that price on Friday, May 23rd to confirm a new main model buy signal...
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1286.00 
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Friday, May 23rd

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
At last, no mid day updates today...  maybe this market will be kind to us...
 
For the JUNE SP futures, the last trade as of this writing is at 1890.10...
For Friday, a close below 1860.00 in the June SP futures would confirm a new main model sell signal...    
 
The NT (Near Term) indicator
This is a scatter graph of the NT indicator with the blue line as the price line and the red line as the NT indicator itself...  while you don't see the trading price ranges for each day, you may get a better sense of correlation between the NT and price...  with this graph you can see each buy and sell spike with its corresponding price point...  so far, the current buy spike looks real and suggests this market may well be on its way to a new bull leg into new all time high territory...
The LT (Long Term) indicator
This LT graph needs no explanation, notice the blue line nicely above the red confirmation line and the purple line advancing nicely...
The following are the current upside VPs for the JUNE SP...
minor - - 1884.00  (already reached)
minor - - 1888.70  (already reached)
minor - - 1896.70
MAJOR - - 1899.30 and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
MAJOR - - 1900.90 and must close below that price on Wednesday, May 28th to confirm a new main model sell signal...
minor - - 1901.10
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1992.70  (no typo)
The June Gold futures
Yesterday, I said, "While the main model remains short, I would expect to see a possible gold rally tomorrow..."  Well, we did see that rally and we also had a buy signal triggered, but it was rejected soon thereafter...  oh, well...
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1294.60...
For Friday, a close above 1297.20 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
This LT graph shows the gold market is still in intensive care as the price continues to flat line...  most likely, this is the quiet before the storm...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90
minor - - 1269.30
MAJOR - - 1262.00  and must close above that price on Friday, May 23rd to confirm a new main model buy signal...
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1286.00 
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Thursday, May 22nd

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1884.30 as of Wednesday, May 21th...  
 
We had an earlier morning update with a buy to be confirmed at 1874.70, but due to the serious overhead congestion, the main model raised the bar to 1884.30 at about mid day...
 
For the JUNE SP futures, the last trade as of this writing is at 1885.40...   
For Thursday, a close below 1859.10 in the June SP futures would confirm a new main model sell signal...    
 
The NT (Near Term) indicator
The NT has now given us a clear buy spike and it occurred today... last Friday I said the NT was setting up for a buy spike for early this week...  it developed on Wednesday, and also moved back up above that little support line which I left intact for you to see...
The LT (Long Term) indicator
Wow, the blue line has now moved nicely above the confirmation line...  and the purple line also gave a nice buy spike as did the blue line...  is it really possible this market is now out of the proverbial woods???  Well, I don't want to get ahead of myself, but I do have my fingers crossed...
The following are the current upside VPs for the JUNE SP...

minor - - 1884.00
minor - - 1888.70
minor - - 1896.70
MAJOR - - 1899.30 and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
MAJOR - - 1900.90 and must close below that price on Wednesday, May 28th to confirm a new main model sell signal...
minor - - 1901.10
MAJOR - - 1901.40 and must close below that price on Monday, May 26th to confirm a new main model sell signal...
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1992.70  (no typo)

The June Gold futures
While the main model remains short, I would expect to see a possible gold rally tomorrow...  the low today penetrated the floor price and then closed above it...  this is at least temporarily bullish...  with a respectable rally tomorrow that holds into the close, we may well be long gold at the end of the day...
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1291.80...
For Thursday, a close above 1297.20 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
One good look at the gold LT chart and you begin to understand the true meaning of the word sideways...  this graph is somewhat constructive and hopeful for a rally...  it may well come sooner than later, but just not today...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90
minor - - 1269.30
MAJOR - - 1262.00  and must close above that price on Friday, May 23rd to confirm a new main model buy signal...
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1286.00  a break and close below this floor price would be considered a second main model sell signal...   the market broke below this floor price today and then rallied...  this is bullish at least near term...
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Wednesday, May 21st

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...

PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...

The main model is currently short the June SP from 1874.70 as of Tuesday, May 20th...

Wow, what a difference a day makes, 24 little hours... clearly, that one day rally didn't hold up... what about that rally??? Now you see it, now you don't...

For the JUNE SP futures, the last trade as of this writing is at 1868.40...

For Wednesday, a close above 1874.70 in the June SP futures would confirm a new main model buy signal...

The NT (Near Term) indicator

I left that underlying "support line" so you can see what happened today... we could still get a buy spike tomorrow, but it seems less likely that we'll see a buy signal along with it..

The LT (Long Term) indicator

The bullish divergent patterns have been obliterated from this LT graph... what we now see is the blue line "kissing" the red line and then moving lower again... the green price line itself looks like it's beginning to roll over... this kind of choppy action is not terribly bullish at this point...

The following are the current downside VPs for the JUNE SP...

minor - - 1852.30

minor - - 1841.20

MAJOR - - 1833.40 and must close above that price on Wednesday, June 11th to confirm a new main model buy signal...

MAJOR - - 1816.80 and must close above that price on Friday, May 30th to confirm a new main model buy signal...

minor - - 1796.90

MAJOR - - 1754.40 and must close above that price on Tuesday, July 1st to confirm a new main model buy signal...

TOMORROW'S FLOOR PRICE - - 1865.00 This is close by and a close below this floor price would mean a second main model sell signal...

The June Gold futures

Gold is the same story, but only in reverse... this market is first beginning to show some life, but no rally quite yet...

The main model is currently short June gold from 1294.50 as of Thursday, May 15th...

For the June gold futures, the last trade as of this writing is at 1294.50...

For Wednesday, a close above 1294.50 in the June gold futures contract would confirm a new main model buy signal...

The LT (Long Term) Indicator

While the gold market itself continues to drift sideways to lower, the LT graph for this market appears to be positive, notice the blue and purple indicator lines holding more above the red line than below it... this suggests a possible forthcoming rally is brewing... but still, we need a confirming close...

Directly below is a chart of the June gold contract and the wedge I mentioned before... when it comes to wedges like this one, I prefer to use the 65% rule... this means that the market never completely travels 100% through the entire wedge, it tends to break out one way or the other after going about 65% through it... and by the looks of it now, it appears this market is about 65% through it... so, a break out of this wedge seems very likely very soon... my hunch is higher, but any hunch is dangerous...

The following are the current downside VPs for June gold...

minor - - 1277.90

minor - - 1269.30

MAJOR - - 1262.00 and must close above that price on Friday, May 23rd to confirm a new main model buy signal...

MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...

TOMORROW'S FLOOR PRICE - - 1286.00 a break and close below this floor price would be considered a second main model sell signal... notice how today's low reached 1286.00, a penetration of this floor and then a rally... this could be considered bullish...

As for now, the main model remains short gold...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

The Long Term (LT) Indicator

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

The green line = the closing price for the specific market

The red line = the confirmation line

The purple line = the early warning line

The blue line = the imminent warning line

The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

For Tuesday, May 20th

The June SP Futures
A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently long the June SP from 1874.70 as of Monday, May 19th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1882.40...   
For Tuesday, a close below 1874.70 in the June SP futures would confirm a new main model sell signal...    
 
We had a solidly confirmed buy signal today...  this confirmation after a continued rally from the floor price itself...  a rather impressive performance from this market...
 
The NT (Near Term) indicator
You can see the NT indicator itself just now touching an uptrend line of the previous three low pivots...  for tomorrow, keep your eye on the NYSE daily TRIN reading...  anything more bullish than a 1.26 would give us a buy spike for this indicator...  yes, 1.26 is somewhat negative, but this only suggests that any additional selling tomorrow would still be bullish...  I said on Friday that the NT is setting up for a buy spike for either Tuesday or Wednesday...  well, it looks like Tuesday might be the day...
The LT (Long Term) indicator
Today, the LT graph more clearly shows the bullish divergent pattern that began to form on Friday...  the price line did not make a lower low, but both indicator line did...  this means the market is more oversold now than it was at the previous lows...  that's bullish...  also, the blue line has just barely crossed above the red confirmation line...  let's hope this continues...
The following are the current upside VPs for the JUNE SP...   note the ceiling price listed below...
minor - - 1884.00
minor - - 1888.70
minor - - 1896.70
MAJOR - - 1899.30 and must close below that price on Monday, June 2nd to confirm a new main model sell signal...
MAJOR - - 1900.90 and must close below that price on Wednesday, May 28th to confirm a new main model sell signal...
minor - - 1901.10
MAJOR - - 1901.40 and must close below that price on Monday, May 26th to confirm a new main model sell signal...
MAJOR - - 1918.30 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
MAJOR - - 1936.00 and must close below that price on Friday, June 13th to confirm a new main model sell signal...
TOMORROW'S CEILING PRICE - - 1992.70  What???  Now you see why I so rarely ever mention a ceiling or floor price,  it's hardly worth listing...  but, here it is for your reading enjoyment...  and they drift up and down much of the time, they're typically light years away from the market, sort of like in the next galaxy over some 20 light years from here...   LOL!!!
The June Gold futures
Gold gave us another failed buy signal...  once again, this market cannot get out of its own way to stage a rally...  and when it does, it doesn't hold...
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1293.10...
For Tuesday, a close above 1305.70 in the June gold futures contract would confirm a new main model buy signal...  
 
The LT (Long Term) Indicator
 
This is the LT chart for the gold market, a market now in intensive care...  LOL!!!  The price like is actually forming a wedge pattern...  it will eventually break one way or the other...
 

The following are the current downside VPs for June gold...
 minor - - 1277.90
minor - - 1269.30
MAJOR - - 1262.00  and must close above that price on Friday, May 23rd to confirm a new main model buy signal...
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
TOMORROW'S FLOOR PRICE - - 1287.40  a break and close below this floor price would be considered a second main model sell signal...
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
 
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
The Floor/Ceiling Price
 
The floor price is always there in a down trend, the ceiling price is always there in an up trend...  these specific prices are rarely mentioned because the market rarely reaches them...  these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not...  a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS... 

For Monday, May 19th

The June SP Futures

A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...

PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...

The main model is currently short the June SP from 1890.60 as of Wednesday, May 14th...

For the JUNE SP futures, the last trade as of this writing is at 1875.10...

For Monday, a close above 1874.70 in the June SP futures would confirm a new main model buy signal... a mid day SP update is also possible on Monday...

I mentioned the floor price in yesterday's evening briefing... I've now included this component in the tutorial at the bottom of every email briefing...

We clearly had a nice rally off the floor price, which was to be expected... observe that the market made an attempt early this morning to challenge the floor price once again, but the market was repelled and the rally resumed... treating the floor price the same as a VP price, this market has now rallied nicely and had not returned to touch the floor price again... this is bullish market behavior...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

The NT (Near Term) indicator

The sell spike is becoming more pronounced each day, but is now moving into neutral/oversold territory... peeking ahead at the NT formula itself, I would suspect we could see a buy spike by Tuesday or Wednesday, unless this market has something else in store for everyone...

The LT (Long Term) indicator

Yesterday, I said the two indicator lines have morphed into a bullish pattern... today, we have buy spikes from both indicator lines, but no buy signal as yet...

The following are the current downside VPs for the JUNE SP... today, I've included Monday's floor price, they change almost every day... and in an uptrend I will post the ceiling price for you...

minor - - 1852.30

minor - - 1841.20

MAJOR - - 1833.40 and must close above that price on Wednesday, June 11th to confirm a new main model buy signal...

MAJOR - - 1816.80 and must close above that price on Friday, May 30th to confirm a new main model buy signal...

minor - - 1796.90

MAJOR - - 1754.40 and must close above that price on Tuesday, July 1st to confirm a new main model buy signal...

TOMORROW'S FLOOR PRICE - - 1862.50

For now, the main model remains short the SP...

The June Gold futures

The main model is currently short June gold from 1294.50 as of Thursday, May 15th...

For the June gold futures, the last trade as of this writing is at 1293.10...

For MONDAY, a close above 1298.30 in the June gold futures contract would confirm a new main model buy signal...

The LT (Long Term) Indicator

A continued sideways chop for this LT graph...

The following are the current downside VPs for June gold...

minor - - 1277.90

minor - - 1269.30

MAJOR - - 1262.00 and must close above that price on Friday, May 23rd to confirm a new main model buy signal...

MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...

TOMORROW'S FLOOR PRICE - - 1287.40

As for now, the main model remains short gold...

BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:

The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...

The Confirmation Price

The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal... the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick... but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability... as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun... very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky... the same can be said for taking a new short position at a sell confirmation price... but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending... this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...

The NT Indicator

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days... using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop... if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

How To Read The NT Indicator

The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...

The VP Price

The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price... however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely...

The Floor/Ceiling Price

The floor price is always there in a down trend, the ceiling price is always there in an up trend... these specific prices are rarely mentioned because the market rarely reaches them... these are not VP prices but can be treated the same as a VP price except floor and ceiling prices change every day while the VP price does not... a close beyond the floor/ceiling price should be considered a second buy or sell confirmation signal...

How To Read The VP Price

If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over...

A Suggestion On How To Enter A Position On A New Main Model Signal

One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points... after that initial position is taken, let the market do what it does all day... then, late in the day, if the market is still confirming the signal, then add the second 1/3 position... and then, on the close take the final 1/3 position... your average entry price will be above/below the confirmation price but the whips will be significantly reduced... this is a method I use for myself very often...

Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...

Rejected Buy/Sell Signals

Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule... a rejected sell signal is typically followed the next day by a sharp rally... as well, a rejected buy signal is typically followed the next day by a sharp decline... however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...

The Long Term (LT) Indicator

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

The green line = the closing price for the specific market

The red line = the confirmation line

The purple line = the early warning line

The blue line = the imminent warning line

The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...

The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...

NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...

For Friday, May 16th

The June SP Futures
A BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS can be found at the bottom of every email briefing for your easy quick reference and convenience...
 
PLEASE TAKE THE TIME TO REVIEW THE TUTORIAL EVERY NOW AND THEN, THESE ARE THE NAVIGATIONAL TOOLS NEEDED TO MANEUVER SAFELY THROUGH THESE MARKETS, A GOOD WORKING KNOWLEDGE OF THESE TOOLS WILL MAKE YOU A BETTER AND MORE INFORMED INVESTOR/TRADER...
 
The main model is currently short the June SP from 1890.60 as of Wednesday, May 14th...  
 
For the JUNE SP futures, the last trade as of this writing is at 1866.90...   wow, not a shabby sell signal as scary as it looked!!!  LOLOL!!!!!
For Friday, a close above 1898.00 in the June SP futures would confirm a new main model buy signal...  
 
The NT (Near Term) indicator
Yesterday's NT sell spike is more pronounced today...  however, while the market didn't quite reach the initial downside minor VP of 1852.30 today, the main model shows that a floor price of 1859.20 was in play and the market traded down to 1959.00, penetrating that floor price by .20 points...  and then, the market rallied back above that floor price...  a floor price is not a VP price, however on those rare occasions when the market penetrates either a floor or ceiling price and then closes back inside, then we could expect to see a counter trend move at least for the near term...  this modest late rally off this floor price could well have been all the rally we'll see...  but, the fact still remains, we may still see some upside follow through tomorrow...  either way, there is clearly no buy signal nearby...
 
I realize I've not said much about the floor or ceiling prices, but they exist and they're always there, but the market never moves near enough to be a factor worth considering...  today, the market fell so far that it did actually penetrate the floor price by a mere .20 points and then bounce from it...  a rally of some sort would be typical, but we'll see...
The LT (Long Term) indicator
Today's LT graph actually shows us some bullish divergence, surprising...  notice how the current price line did not reach the previous low pivot, but the blue and purple lines did...  this means this market is now oversold enough for a possible bounce tomorrow...  this further supports the fact that the market penetrated and then bounced off the floor price today...  so, a bounce is possible, either overnight or with some follow through tomorrow, if at all...  either way, the main model remains short...
The following are the current downside VPs for the JUNE SP...  these are the new and current downside VPs for this short position as of this morning...
minor - - 1852.30
minor - - 1841.20
MAJOR - - 1833.40 and must close above that price on Wednesday, June 11th to confirm a new main model buy signal...
 
MAJOR - - 1816.80   and must close above that price on Friday, May 30th to confirm a new main model buy signal...
 
minor - - 1796.90
 
MAJOR - - 1754.40 and must close above that price on Tuesday, July 1st to confirm a new main model buy signal...
For now, the main model remains short the SP...
The June Gold futures
The main model is currently short June gold from 1294.50 as of Thursday, May 15th...
For the June gold futures, the last trade as of this writing is at 1293.80...  wow, this gold market can't get out of its own way to hold any rally...  very disappointing...
For Friday, a close above 1309.20 in the June gold futures contract would confirm a new main model buy signal...
 
The LT (Long Term) Indicator
The LT graph looked solid enough yesterday, but today's weakness peaked the blue and purple lines once again...  both are now again perilously close to the red confirmation line...
The following are the current downside VPs for June gold...
 minor - - 1277.90
minor - - 1269.30
MAJOR - - 1262.00  and must close above that price on Friday, May 23rd to confirm a new main model buy signal...
MAJOR - - 1249.70 and must close above that price on Monday, June 9th to confirm a new main model buy signal...
 
As for now, the main model remains short gold...
BRIEF TUTORIAL OF MAIN MODEL APPLICATIONS:
 
The SP confirmation close ALWAYS refers to the large contract 4:15 pm futures closing price...
 
The Confirmation Price
 
The confirmation price is a specific market price beyond which the market must close in order to confirm a new main model buy or sell signal...  the confirmation price is not a top or bottom picker, it is not designed to get you into a new position right at, or near, the top or bottom tick...  but rather, it tells you that the trend has more than likely changed direction with a high degree of reliability...  as has been demonstrated with better than a 98% reliability, the confirmation price confirms that the market trend has legitimately changed direction and that a new trend has just begun...  very often, a buy confirmation price may seem so far above the market that taking a new long position at that high level seems risky...  the same can be said for taking a new short position at a sell confirmation price...  but factually, these price points are the most ideal place to enter a new position since these confirmation prices occur where most people are likely to take new erroneous positions in the trend that is just ending...  this is why the market moves so explosively after the price is confirmed, e.g., the new short holders are scrambling to cover or the new dip buyers are selling out rapidly...
 
The NT Indicator
 

The NT indicator is a near term (NT) indicator and is included in the evening briefings for the benefit of those who make counter trend trades... the NT buy and sell spikes are not main model buy and sell signals, these spikes are only very near term, although they could always develop into something more significant over the next few days...  using a weather analogy, the buy/sell spikes are much like a developing low pressure area or a tropical wave, they do not indicate a fully blown hurricane, although it could eventually develop...  if a fully blown hurricane actually does develop, then the main model signal itself would address that market action...

 
How To Read The NT Indicator
 
The best and safest time to take an NT signal is when the market has already trended for some time and is now approaching a VP price, especially a major VP, then the NT spike would indicate that the trend is likely to reverse since the market is already vulnerable at a VP price, the NT spike provides greater certainty for that counter trend trade...
 
The VP Price
The VP, or Vertical Price, is NOT a target, the market is not required or expected to reach any VP price...  however, if reached, the VP price represents where the buying/selling has stretched to its maximum exhaustion point, at least temporarily, and a change in trend is very likely... 
 
How To Read The VP Price
 
If the market touches and then moves away from the VP very quickly and doesn't return, then this more than likely indicates a market reversal, but if the market moves away from the VP and then returns within a day or two, maybe sooner, then the move is not over and the market is likely to continue in its current trend... repeated visits to a VP suggests the move is not yet over... 
 
A Suggestion On How To Enter A Position On A New Main Model Signal
 
One way to enter a new signal trade is to take only 1/3 position only after the market trades through the confirmation price by a few points...  after that initial position is taken, let the market do what it does all day...  then, late in the day, if the market is still confirming the signal, then add the second 1/3 position...  and then, on the close take the final 1/3 position...  your average entry price will be above/below the confirmation price but the whips will be significantly reduced...  this is a method I use for myself very often...
 
Another way to enter a new position is to wait for the actual confirmation on the close, and then take the new position...
 
Rejected Buy/Sell Signals
 
Rejected buy and/or sell signals are typically followed by a sharp market move in the opposite direction the following day, this occurs as a general rule...  a rejected sell signal is typically followed the next day by a sharp rally...  as well, a rejected buy signal is typically followed the next day by a sharp decline...  however, if the sharp rally/decline does not occur, then you can expect to see the market make another attempt at that buy/sell signal...
 
The Long Term (LT) Indicator
 

The long term (LT) indicator is a myriad of indicators that give you an X-ray view of the market internals and trend...

 
The green line = the closing price for the specific market
 
The red line = the confirmation line
 
The purple line = the early warning line
 
The blue line = the imminent warning line
 
The purple and blue lines crossing the red line gives you early and imminent warning of a change in trend direction...
 
 
The email SUGGESTION BOX is always open and invites your ideas for improving and enhancing your email service, I enjoy hearing from you, many thanks...
 
NOTICE: I SEND OUT AN EMAIL EVERY WEEKDAY EVENING, IF YOU DO NOT RECEIVE ONE, PLEASE LET ME KNOW, THANKS...