A look at some indicators

Posted by matt on 3rd of Apr 2023 at 04:43 pm

$NYA - Chart Link- shows the Breadth Thrust - over the last year these have occurred near highs. That said this one was stronger than the last one - it worked from oversold to overbought in 10 days, so 1 days shorter than the official 9 days

$SPX - Chart Link- NYMO been above it's upper BB's, that said while short term we'll probably see a pullback any day here as today should probably mark a 4th DAY! which is getting extended - but overall it's not bearish, this moving outside the bands usually starts an uptrend for a bit - short term I'd be looking for a pullback any day but it's likely to get bought

$COMPQ - Chart Link- the difference between highs and lows is nearing the zero area

$COMPQ - Chart Link- good illustration of the large cap techs leading will smaller ones lag - notice the the highs is far lower than it was at the start the February and the QQQ is basically at the same price

as Steve replied already formulate

SPX Views

Posted by matt on 2nd of Apr 2023 at 09:42 pm

as Steve replied already formulate a plan and strategy that fits your style. As far as me showing some bigger picture charts a week ago such as the monthly and yearly charts, that's my opinion for now that those eventually play out over time. It doesn't mean they will or have to just an opinion and showing what those charts look like. And when I state things like overall bear market, that should not preclude you from following your plan or executing on a long that meets your trigger conditions etc.  Under a longer bear market conditions, you can have rallies that lasts for many months, 3, 5, 6 months longs and huge moves - when you get valid long triggers there's no reason to ignore them. The October low had 5th waves down and as we always say, anytime you complete 5 waves you are going to have a longer trending move in the other direction. And as far as pundits calling for the bear market being over in Oct maybe they are right and maybe they are not, it doesn't matter. I guess the only way it would matter is if you are someone who went long everything in Oct/Nov and you only plan to look at the market a year later - that that's no one here, everyone here is active and dynamic. 

again our opinion longer term is our opinion, but we will adapt to whatever the market does. Also, and as I've stated - if we go back into a bull market cycle, the KISS index systems will catch that, and if we go back into a strong decline later this year, the KISS systems will avoid that - so one option is to just follow those - they will catch whatever occurs

My opinions/concerns longer term:

1. Debt, debt, and more debt - the whole system is a Ponzi scheme and will eventually implode, when that is who knows
2. Inflation is a real concern and for now appears to be embedded - that's why you don't want to let the cat out of the bag, once out it's hard to get the thing back in
3. The move away from the US Dollar as the world reserve currency is starting to unfold slowly. Having the reserve currency of the word is what has allowed us to print money to no ends have our cake and eat it too - eventually that's going to come to and end and we'll have to pay the piper
4. Gold may eventually have its day when all this comes home to roost
5. The Fed is not going to able to easily go back on a cutting cycle and nor should they
6. The market being in a bear market: Clearly that was the case in 2022.  What type of bear market is this remains to be seen, was it over in less than a year? or could this unfold over 2 or close to 3 years like the bear market from 2000 - late 2002?
7. This AI stuff is probably an area to focus on stocks in that area and new IPO's and players that come into the space - there will likely be stocks that could go up 10, 20, 50 fold over time

I nor you can control any of these things, what I focus on is my plan for my trading and longer term position trading. If I see a stock coming out of a long term base etc and I like the company, I will still look to buy a position into it regardless. Basically I still play setups regardless of the backdrop and I use money management and stops

I feel that I'm just rambling now, but again I want to stress that just because we might show a monthly or weekly chart and make comments about it, don't let that distract you from your plan and executing on your triggers.  I would also suggest not listening to CNBC pundits - it's fine to listen but don't so locked into one opinion or article that you read that it affects your trading and execution of your plan

I'll look for your email: Systems:  KISS systems, reversion to mean systems - they are mutually exclusive to whatever our subjective technical analysis say - they do what they do on their own. 

Reversion to mean system trades are emailed out and sent out via SMS text message.
- KISS systems are shown nightly and lately I've been posting when they go long or flat as well - these systems are not time sensitive like the reversion to mean, it doesn't matter if one doesn't see those trades until after hrs as they tend to stay in positions for weeks to months. Also, most of the changes are adding  a new higher low stop, which is something one can adjust for the next day as they would already have a stop in place from the previous STS. you can also use this URL to see tons of ETF's and stocks, it's updated once a day after the market
https://breakpointtrades.com/ts/sts.php?chart_group=BPT_basket 

yes remember gold and GDX is still trading above its 5 day EMA, not just the 9 EMA, so the uptrend is strong and any short is very aggressive as it's uptrending. The GDX never broke down through that wedge and DUST never broke out of it

SPX 60 min

Posted by matt on 30th of Mar 2023 at 09:58 am

SPY - Chart Link- yesterday we gapped over that inner trendline which was bullish, today we gapped over the longer trendlines

to me yesterday was noise - SPX closed in the middle of that coil from the 60 min. QQQ's were weakest but that was too be expected as some money rotates out of that area. Looks like I did the opposite to you, I wasn't worried about a gap down in the market this morning, yesterday the SPX closed right in the coil and bounced off the uptrend line on the 15 min chart, I favored a gap up in the market over the small trendline on that 60 min SPX not a gap down and took some URPO long yesterday near the close and in after hrs - worked out

even now we are still within the coil like pattern on the 60 min SPX. We continue be in a choppy range, which I favor

BOIL - Chart Link- stalled at the downtrend line yesterday, up some today

BOIL - Chart Link- 60 min, could be forming some sort of wedge

BOIL - Chart Link- 2hr view

best to use options to avoid the dreaded K1 unless trading from an IRA

Gold, GDX comments

Posted by matt on 28th of Mar 2023 at 10:39 am

GLD - Chart Link- gold closed over its 9 EMA yesterday, until it closes below that, it's uptrending 

GDX - Chart Link- daily 

GDX - Chart Link- 60 min, as I commented last night if this is a wedge, it needed another move up to complete - now if it blows out through the top of that wedge trendline then it would be negated 

jdeen - regarding your KISS system questions:

Hello Again Eddie - I'll attempt to answer some of your questions here, however it might make sense for us to talk on the phone, scheduled a quick private Zoom call where I can bring you on my computer and answer your questions more directly might be the best use of time vs me spending too much effort on an email. Let me know if you would like to do that.

As far as the KISS charts - first off they are long only. They were designed with a 401K type of plan in mind where you might typically be long the index funds and they were designed to try and catch bull market uptrends, while providing a protective stop to avoid the 20% and 30% draw downs that occur, even in bull markets. In bull markets things like SPY and QQQ stay long most of the time, maybe the STS stops get hit 3 - 5 times a year, but then quickly get back into the market. In bear markets like we are in now, the indexes will generally go long for 1 or 2 months then stop out again. Again that's for the indexes, some sectors and stocks can be in bull market uptrends such as energy stocks last year the KISS systems stayed long most of the year for instruments like XLE and OIH.

As far as being able to tell if the system is long or not - simply look at the chart and if you don't see a listed STS stop the right side of the chart, then the system is flat for that instrument. For SPX it's flat, for IWM daily it's flat. for QQQ it's been long for a couple weeks. See attached images for examples

The KISS systems can have really good entries at times, but not always. I think the systems are best used as a guide if you are already long the instrument and want an idea for a trailing type of stop. But otherwise the systems have good entries, and at times when they might go long when price is extended/overbought, I like to wait a day or several days and try to buy a pullback. 

There's various other indicators on the charts that are not really part of the systems but are nice tools, such as the A's, tend to show up when price is very overbought and prone to pulling back, or if they occur on a sell off price is quite oversold and due for a bounce. There's also the Demark counts, which are useful when you see 9 and 13 counts.  The MA ribbion is also very useful and a great guide - especially when you see it pinch or get too expanded. 

here's an example of the KISS system on the SPX drawing the STS in place (they used to be called DVT's) -this is a short video I did without sound that shows the DVT's/STS's being placed as price develops 

https://www.youtube.com/watch?v=V1664xCWUII  

The STS basket we created expanded the KISS system from the SPX and QQQ to a basket of ETF's and stocks

https://breakpointtrades.com/ts/sts.php?chart_group=BPT_basket 

follow up on these precious metal stocks

Posted by matt on 27th of Mar 2023 at 12:12 pm

DRD - Chart Link- bounced off that broken trendline

OR - Chart Link- found support at its 9 day EMA

DPMLF - Chart Link- found support at its 9 day EMA

eddie- so this website takes a bit different approach from a lot of others - we have a combination of day traders, swing trades, futures trades, hybrid traders, busy professionals such as doctors/lawyers who can't watch the market but want an idea once in a while or they use our site to help manage their 401K, or folks who like systems trades like our SPY and ES systems, or KISS systems

For the SPY and ES systems I send out trade notifications for entries and exits - that's about as mechanical as you can get where you just follow the trade entries and exits. I also plan to expand this to other ETFs for a basket. The KISS systems are the same, for example QQQ system is long on the trend side, and among other things

https://breakpointtrades.com/ts/sts.php?chart_group=BPT_basket

https://breakpointtrades.com/new_spy/  

Because we have traders from all walks of life all with different risk/reward tolerances, goals, and interests, the newsletter is meant to give analysis and ideas for these different types of traders to pick and choose from. Market analysis, commodities, trade ideas. Folks may decide to choose one or more of the trade ideas and use our chart as a guide to trade it - and everyone will manage the trade differently depending on if they are a day trader or swing trader etc

if you need something 100% mechanical then the SPY and ES reversion to mean systems are that, as well as much of the KISS stuff

BPT is really more of a place for technical analysis nerds who want ideas and analysis and systems trades, but who are also willing to learn on their own and use our information to make their own decisions. BPT is not a dumbed down website for marketing to the masses 

for many people it takes some time to get up to speed and figure out what information to use and follow and what information to ignore - please give it some time and we are here for questions or a phone call

hello eddiegold - regarding those pop out alerts etc - please read over this old FAQ, again this FAQ greatly needs to be updated but the comments about the pop up alerts is true - those are simply alerts that we set near trendlines or important areas. Just like you might add a list of stocks to a watchlist at your broker and you set price alarms on the stocks to alert you once the stock hits those - it's the same thing there. Those are not direct buy and sell trade alerts sent out by us, they are simply alarm prices that are pre set. Sometimes we forget to cancel those out and the alarm pop out might continue to go off until we cancel it

yes the trigger was last week - today price pulled back and held that broken trendline - a stop could probably go just below that trendline 

TradingView intra day trend chart

Posted by matt on 23rd of Mar 2023 at 02:45 pm

this clean workspace I created a while back works well on trending days - on days of chop it doesn't do well, like anything it's a useful tool for the right times

https://www.tradingview.com/chart/RcUtnckV/ 

ES hi mid lo short closed out

Posted by matt on 22nd of Mar 2023 at 05:16 pm

As you know on Monday the Hi Mid Lo system triggered a short on ES/MES futures, that system is closing out here. The system was clearly sensing a pullback and we got that. It's a reversion to mean system and does not try and hold trades for bigger trends. That said, if you think the market has potential to go down from here,  one option you could consider is closing 1/2 and keeping the other 1/2 with a stop, that way if the market sells off you still participate in that move. You make your own decisions as I'm not an investment advisor, but that's one option

COUR follow up

Posted by matt on 22nd of Mar 2023 at 11:06 am

COUR - Chart Link- short idea from Monday, yesterday the bounce backtested the broken trendline and down today

Roy - these trend systems are meant to catch trending moves lasting weeks to months, not a couple days. 

while in the future we have some plans to be able to update the KISS charts maybe a couple times a day, but it will require extra cost - we have to get a new TS account, another computer, stuff like that

but for now the KISS charts are updated shortly after the close, which to me is fine, why? ETF's trade until 8 pm and some places like IB now allow you to trade ETF's all night and on Sunday. And if the average trade is lasting 1, 2, 3 months, seeing a signal shortly after the close or entering it a day or so later doesn't matter much. It's not like the reversion to mean systems that might only be in the trade a few days or a week where you really don't want to chase - some slippage here doesn't matter

also realize that it's a tool management system - while some of the entries are great, I think it's a good tool to manage a trending instrument that is already in an uptrend.

SPX 5 min

Posted by matt on 16th of Mar 2023 at 02:41 pm

$SPX - Chart Link typical mid day trend-day consolidation. The 50 SMA is generally support on a 5 min. Currently the MACD has recycled back to near zero and 60 Stochastic is testing 80 level

Systems update

Posted by matt on 15th of Mar 2023 at 06:04 pm

This is an alert about BPT Mechanical Systems:

Hello everyone, update on the systems, first off the 21 reversion to mean systems: As you know the SPY Bear long closed out yesterday for a nice trade, while the ES version of the bear long remained long. Today the ES bear long closed out as well. At the moment all the reversion to mean systems are flat.

On the flip side the QQQ daily KISS trend system went long with a stop at the lows. The QQQ's have been outperforming lately. 

see attached images showing the reversion to mean systems, the closed trades, and the QQQ KISS

I'm doing the newsletter this evening but it will be out late tonight as I have to run to my son's school for an event.

IYT - Chart Link- they all retested their broken trendlines yesterday, where they obviously found resistance, were good shorts there

XLB - Chart Link-

XHB - Chart Link-

XLV - Chart Link-

following up on some of the gold stocks

Posted by matt on 14th of Mar 2023 at 02:52 pm

OR - Chart Link- one I posted yesterday had strong overall relative strength against others in the sector, breaking that trendline today

DPMLF - Chart Link- another one that has been very strong and hardly got hit during that GDX/Gold selloff over the last couple months

BVN - Chart Link- this one stood out as well, off the highs yesterday but regaining ground

MAG - Chart Link- one that was opposite in terms of relative strength, got hammered during the gold sell off, but had a nice divergence setting up via RSI and MACD

SPX 195 min 1/2 day tested that broken trendline

Posted by matt on 14th of Mar 2023 at 12:21 pm

$SPX - Chart Link- notice the highs tested the broken trendline - resistance!

but damn Stockcharts.com still hasn't filled in that data, what a POS

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