Matt, you said you would discuss the mechanical system trade in your Sunday newsletter, and that discussion was not included there. Are you going to make a separate newsletter on the mechanical system trade?

Yes, RSI(5) was below 5% on 15-minute charts and below 10% on two-hour hour charts. Those numbers seem to reliably point to a successful reversion-to-the-mean trade. An inverted hammer was a good trigger. I had a day order at 2084.25 on September, which was not triggering, so I cancelled the trade. Day orders do strange things on IB, sometimes they trigger out-of-hours and sometimes they trigger only during the cash hours. I had a buy stop, I probably should have used a GTC order.

If you see a similar setup again, please make a note on the blog. Thank you, Matt!

Thanks for clarification, Matt! I was looking at 15-minute charts (as per your tutorial), and a 2080 as a target (your pink 9 ema). I believe that 2080 will still be achieved overnight, but I will not bet on it. Yes, I was looking for a 3:1 ratio, which we may still get if 2082 is tested.

Thanks for the idea, the risk/reward did not look good from the 2074.75 entry.

Thank you for re-posting! Your monthly chart aligns well with Martin Armstrong's model, which shows a top this year for European stock markets and government bond markets. A top on the $spx is about 2 years away, scheduled for 2017-18, according to his model. A historical parallel is 1927, based on a peak and crash in bonds, which we are witnessing now, which will drive money into equities for the final top ahead of us.

Is your indicator red now?

Matt, I thought that I understood the logic of your BPT MA indicator. It was supposed to turn green on a successful retest of the 40% level, as you indicated, and it did. Now it turned red again AOD, and I am puzzled why.

There is more than today to this bounce then from a very oversold condition. Thanks!

Is BPT MA deluxe still red? The 50% level on stochastics proved once again to be a good low risk buy point.

Rob, The same analysis should apply to $silver: it is overbought on the weekly charts  (rsi(5), stochastic) but oversold on dailies. For a good trending move, the two charts should align.

Possibly. The short position are not extreme  a barchart of COT positions.

A lot will depend on whether we get a breakdown early next week, or a support will hold and we get a high on $SPX. A high on $spx should correspond to a low on $gold. If we break down support and hold it, then I would favor a high on $gold.

 A good overview going into Monday: http://emini-watch.com/emini-down-toilet/6684/

thanks, please report this chart EOD to confirm the break. I believe we are in a short term-downtrend now.

And we almost profited from that trade.

Do you still stand for your targets of 2140-2160 before a drop to 2020 occurs, saturn?

The PSAR has switched to the short side and the MACD has crossed. I will check at the end of the day whether the sell signal remains in place. Thank you for the chart, Matt!

Could you please include a link to your GDX Renko chart, Matt?

Matt, I appreciate your posting intraday updates on possible trades and the list of systems which would take those trades. Like you said early, it may make sense to take a trade during the day at known support during the last hour trading because the condition may vanish by the close. It did vanish yesterday and on the Friday two weeks ago.

A suggestion for you, Matt, is to send an e-mail notification close to 3pm when a trade is likely.  You usually send it between 2pm and 3 pm anyway.

I took a trade at the known support yesterday near 3pm at the low of the day.

Also, I am seeing a pullback of 17 points since the 31st of March low. That would give a likely target of 2087-17= 2070 for the largest pullback tomorrow, based on chart 12.