January Outlook is Bullish

I have returned from a wonderful holiday and found that my data was unavailable so I had to update my prices by hand.  You really have to appreciate the immense value of cut and paste.  The top chart is my basic volume oscillator which is based on my substitute for the up-down volume ratio.   A close look at this oscillator shows a cash build up beginning 12/21/09 and ending on 12/31/09.

The adjacent chart is an oscillator based on the last price for every 10 minute period.  The calculation of this oscillator is the same as the calculation of the basic volume oscillator, however, the closing price is substituted for the net volume figure.  This is a better illustration of the cash build up since 12/21.

The third chart is a more familiar oscillator that is the most sensitive to change of direction.  Here again we see the cash build up beginning on 12/21 and this T continues well into January of 2010.  Furthermore, this chart demonstrates the expiring T in late December with the market dropping to make a low for the formation of a new center post for this new T.

This fourth chart Illustrates a double T formation in the current T.  This portends something happening this Friday when the job data is announced. Needless to say, the market is a strong buy at this time.  I went long the market on the close 1/5/10.

The last two charts are direction indicators the first is more sensitive than the second or last chart.  The first indicator just went positive and the slower indicator is approaching the positive territory.  These are both very bullish indicators.

On the close of trading 1/5/10, I executed the following orders:

Bought DIA  @ 105.50

Bought BGU  @ 55.66

Sold Short BGZ  @ 16.10