The ACD Method

Man, the action is really picking up on the number lines. April should be a very interesting month. Keep an eye on Gold. It has worked off almost all the negative values and is about to re-set. The 5 day is +8. I wouldn't touch it going into end of quarter. But next week watch out.
 
Quote from chicagodon:

I hope Mav doesn't mind me reposting this, I found it burried in this thread and I think its a great nugget..

"If you have a longer term number line at plus 18 and the 5 day at minus 3, I would not want to be long because what the 5 day is telling me is price is going lower, not higher. I would much rather wait for the 5 day to go to plus 5 when the 30 day is at plus 18. What I have noticed is actually quite the opposite. For example, say you have a stock at plus 18 on a 30 day number line. Say you also have a 5 day at plus 5. Many times price has actually pulled back while "maintaining" a strong number line. This is actually the type of pullback I want to buy. Guys, this happens a lot." -MAV
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A great entry trade is where you get a correction in price with a continuation numberline. What causes this? Gaps for one. And large opening range moves. See you can actually add positive number line values on a stock that is declining in price. Try doing that with your dad's old school TA! LOL. It's basically allowing you to take advantage of news spikes or large moves that are immaterial to the price action.
 
With the end of QTR, here is a breakdown on the futures side how everything shaped up. The big winners this QTR were Natural Gas and Japan (both the Nikkei and the Yen). Copper was by far the weakest risk asset.

fut_image.ashx
 
And this is a breakdown of the big winning sectors. Honestly, the charts of utilities, consumer cyclicals and healthcare look like internet stocks from the late 90's. I have never seen charts this smooth for this long for a sector. Normally one would see this as a very bearish sign. But in this easy money world we live in, it's much harder to come to that conclusion.

grp_image.ashx


And the corresponding 30 day number lines for those 3 sectors are:

XLP currently 23 (QTR high 29)

XLU currently 10 (QTR high of 19)

XLV currently 12 (QTR high of 32)
 
On the FX side

We had some strong pairs re-set on the 30 day finally:

USD/JPY, EUR/JPY, EUR/ GBP all reset after some very strong values early the QTR.

EUR/AUD confirmed on the downside a few weeks ago and GBP/JPY confirmed last week on the downside.

AUD/JPY is the only one yet to re-set.
 
And for those of you that follow the energy crack spreads, we have some major weakness in both the heating oil and rbob cracks. Major sell signals went off mid march in the number lines. Spectacular follow through.
 
We got a 30 day number line confirm today in Bonds as well as a confirmed monthly A up. So the spoos may not want to sell off yet but Bonds sure want to rally. If you are looking to short this market, buying bonds might be the better trade.
 
Quote from Maverick74:

We got a 30 day number line confirm today in Bonds as well as a confirmed monthly A up. So the spoos may not want to sell off yet but Bonds sure want to rally. If you are looking to short this market, buying bonds might be the better trade.
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Wow
 
Quote from Maverick74:

We got a 30 day number line confirm today in Bonds as well as a confirmed monthly A up. So the spoos may not want to sell off yet but Bonds sure want to rally. If you are looking to short this market, buying bonds might be the better trade.
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Beautiful gap up in the TLT today.
 
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