Dynamic Monthly Biases for July 7

The monthly bias has just flipped to the short side.  That is merely icing on the cake considering that the dailies remain solidly bearish and we would have followed them regardless. 

Hold all three indexes shorts.

The bottom two rows determine the signal.  Dynamic Day One trumps everythingâ€"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.

We haven't been commenting on the daily signals, but the 30-year bonds might be worth noting at this juncture.  They flashed a successful buy yesterday, although our other two tracked interest rate contracts were in opposition.  For June 7, the 30-year bond continues to point higher while the 10- and 5-year notes have turned neutral.  In this topsy-turvy environment in which the contract continues to hover near all-time highs in the face of nine interest rate boosts and historic oil prices, maybe we have to conclude that the perverse price action is not to be argued with.  (Something you often see when a market seems to be flying in the face of logic.)  Not that my non-systemized opinion is worth much, but I'd be willing to bet on an upside bond move for Thursday.

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 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.