Beginning early next week, we will begin posting daily biases in the nine markets we normally track.  This won’t be a system per se, although we’ll examine ways you can convert it into one.  Instead, it will be a guide table that will hopefully provide pre-market-opening probable direction for the day based on the interaction of eight components.  Some elements signal every day as an either-or indicator—others do so less frequently.  There will be occasional days where the result is a tie, meaning no signal in that market. 

We have identified all of them in past columns.  Some we’ve emphasized more than others.   Here’s a review of the bullish biases (+1).  All reverse cases are bearish (-1).

1. The 2-day average is less than the 5-day average.
2. The close is greater than the 40-day closing average
3. The highest close of the past 50 days occurred before the lowest.
4. The close is greater than the previous close and the range is less than the average 10-day range OR the close is less than the previous close and the range is greater than the average 10-day average range.
5. The close is greater than the 15-day high-and-low average (15-day high average plus 15-day low average divided by 2).
6. CUP trade.  For the last three trading days, the middle day had both the lowest low and the lowest close.  In addition, the low on the middle day must also be lower than the lows from the previous three trading days before the middle day.  (CAP would be reverse and bearish.)
7. The highest low minus the lowest low of the last 3 days is less than or equal to 20% of the highest high minus the lowest low of the last 3 days.
8. For the previous two days, the market closed lower than it opened.

As always, we’ll disclose historical results in the days to come.  The new chart will be referred the Daily Czarchart.  The existing system will become the Dynamic Monthly.

Dynamic Monthly Biases for June 17

Flip from short to long in the mini S&Ps.  Hold exiting short in the mini Nasdaq and Russell.

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.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented on 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 on 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 will be speaking at the Chicago Trader's Expo on Saturday, July 16, from 8:00 to 9:30 a.m. The presentation is Identifying, Combining and Profiting from Daily Biases in the Futures Markets.  E-mail Art at artcollins@ameritech.net.