S&P-SAME DANCE, DIFFERENT DAY

Once again, another trading day, another large up futures pre-market, no volume, skip the down gap day, just as a down is to be confirmed. We have seen this no volume, futures pre-market ramp, just as the bears are about to take control for months now.

Here's the thing that even Central Banks can't get around. They ultimately have to have at least one sucker to sell ever higher Apple shares to. The higher the markets climb, the thinner the sucker pool is; just by the shear fact that nobody has enough money to buy enough shares to be worth it.

One hundred shares of Apple today cost well over $50,000, just for a measly 100 shares. How many people can afford that? How many people can the FED convince to risk $50,000 to maybe get a 30 point ramp, making $3000?

I wanted to show you this chart. This is a KAGI chart. When we look at technicals, we try to use as many tools and views as possible.

KAGI charts what ever % you define it to. This takes out the NOISE associated with day to day trading.  I have this chart set on 2%. So, the red bars get you out of the SPY, the black bars, representing an uptrend, get you into the SPY.

Notice the last few days are all black, so the 200 point gap down, did not even stir your coffee.

I find this chart in something like TVIX, that can make HUGE moves, when into a confirmed uptrend, will help keep the stomach ulcers at a minimum.

Set your RSI at a level that has worked well in the past; then assume the same going forward. I have RSI for SPY set at 3, along with running a BBand over the shares.

Between the two additional indicators, we are able to exit SPY around the tops, then safely re-enter when the KAGI goes from red to black.

As you can see, RSI sell indicator has already been triggered on the last high. SPY is currently in day 2 counter trend, with a bullish gap fill. Look for the index to fail here or be making a new high by Tuesday next week.

Tim Kathlina