The Odds Czar: Index Futures Biases for September 9

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By Art Collins | Published 09/8/2005 | Currency , Futures | Unrated

The Odds Czar: Index Futures Biases for September 9

We of the “bearish-with-wide-stop” persuasion are expecting our patience to be rewarded any day now. Our index technicals all remain negative. You had the first signs on Thursday that maybe that the armor might be cracking. (Whatever “armor” is causing the market to move opposite what fundamental common sense would tell you.) The past is full of examples of how the first move off major events often confound expectations �"just long and hard enough to hurt the most possible number of players. Fundamental reality does tend to win out eventually though, and despite what you may be hearing CATASTROPHIC, COSTLY EVENTS ARE NOT GOOD NEWS.

This may further dovetail with some nice daily caps that formed in the S&P and Russell, as well as the fact that the bond numbers remain unusually bullish. Upmoves in bonds could well be compatible with a market drop at this juncture.

Dynamic Monthly Biases for September 9

Hold short positions in all three indexes.

The bottom two rows determine the signal. Dynamic Day One trumps everything�"you always follow it. When it's neutral, the Monthly Perpetual provides the direction. Click here for a more in-depth explanation of the rules.

Daily CzarChart for September 9

The bottom row provides the direction of the bias at the open: long (L) or short (S). When it's neutral, it will read zero (0). Click here for a more in-depth explanation of the rules.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. He is currently working on a second volume. E-mail Art at artcollins@ameritech.net.

It should not be assumed that the methods, techniques, or indicators presented on these websites will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these websites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.