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S&P 500, Nasdaq bullish

By Colin Twiggs
January 9th, 2014 2:30 am ET (6:30 pm AEDT)

These extracts from my trading diary are for educational purposes. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor. Full terms and conditions can be found at Terms of Use.


Research & Investment

ASX200 Prime Momentum returned +32.88% for the 12 months ended 31st December, outperforming the ASX200 Accumulation Index by +12.58%. Comparable results for the S&P 500 are not yet available: the strategy only commenced in November 2013.

S&P 500, Nasdaq bullish

Short (3-day) retracement on the S&P 500 would indicate a strong trend. Follow-through above 1850 would confirm the target of 1910*. Rising 21-day Twiggs Money Flow highlights medium-term buying pressure.

S&P 500

* Target calculation: 1810 + ( 1810 - 1710 ) = 1910

CBOE Volatility Index (VIX) readings below 20 continue to indicate a bull market.

VIX Index

The Nasdaq 100 continues its accelerating up-trend, with rising Twiggs Money Flow troughs above the zero line indicating strong buying pressure. The last decent correction was in June 2013 and continuation of the advance much further without another correction of at least 2 to 3 weeks would suggest the market is becoming over-extended.

Nasdaq 100

Canada's TSX 60 is in healthy shape, with 13-week Twiggs Money Flow troughs above zero indicating strong buying pressure. Breakout above 780 would confirm an advance to 820*. Reversal below 740 is most unlikely, but would warn of a test of primary support at 675/680.

TSX 60

* Target calculation: 780 + ( 780 - 740 ) = 820



Perfection is not attainable, but if we chase perfection we can catch excellence.

~ Vince Lombardi

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