Mr. B reporting in...
The NYMO cycle is UP.
We are nearing the upper turn zone but not there yet.
Hitting the upper turn zone signals a potential change in character.
Sometimes it is reversal. Sometimes it is consolidation. Sometimes it just keeps trending.
One unusual aspect of this up cycle has been the smooth climb from the low.
Smooth up moves usually occur in the kick off of a new trend out of a significant low.
The January low was not severe enough to fit this bill. Hmmm.
Price wise, another day another gap. We are up to six downside gaps (almost everyday) this month.
Note that volume has been declining with the rise in price.
Seems like the kind of conditions where in one day all the month's gains could be erased in one swoop.
If only I knew what will happen!
It is important to note that we are now trading above the upper keltner band.
This is bullish and bearish. Prices above the band are strong trends that can continue for awhile.
However, all or substantially all gains above the band are given up eventually.
You can see some past episodes in the chart.
I am long SPX and R2K.
I have scaled out two profit units in R2K leaving a runner position with a BE stop.
I have scaled out one profit unit in SPX and still retain risk in the trade.
The SPX position was undersized (caution broke down dicipline).
I may add if we get a pre-OPEX low in the days ahead or just ride out what I have.