The majority of the index indicators continue to line up on the buy-side, but again, the setup is not as clear cut as I’d like. We do have a solid either-or negative flash in the S&Ps. I would not strenuously argue against reading the markets individually, however, so if you’re inclined to make a move on Tuesday, you could be justified in buying the Russell or the Nasdaq.

I do have to confess to one additional personal prejudice. CNBC is going over the top again with their perma-bull boolah boolah routine. They posted the number of points away from 13,000 (or was it the points away from a new record close?) pretty much all day long. They displayed floor traders wearing shirts trumpeting how they were bullish and loving it. This kind of arrogance usually spanks traders on an individual basis. I don’t see why the financial network shouldn’t be subject to the same anger of the trading gods, but on the other hand, they have gotten away with a bull market that’s lived more or less as long as my 24-year-old daughter.

There’s not much help in other areas unless you care to follow the solidly bullish reading in the Swiss franc.

Either-Or Biases

The first set of biases includes six biases that individually signal either long or short on a daily basis, except for the rare tie. Each bias has a +1 value for long bias, and a -1 for short. The bottom line is the sum total, which can range from -6 to 6. Positive totals are bullish; negative are bearish. For bullish signals (opposite is bearish):

1. The 2-day average is below the 5-day average.
2. The close is above the 40-day average.
3. The highest close of the last 50 days occurs before the lowest close of the last 50 days.
4. The day's trading range is smaller than the 10-day average range and the day's close is higher than the previous day's close OR the day's range is larger than the 10-day average range and the close is lower than the previous day's close.
5. The close is above the midpoint of the average 15-day range. (The 15-day high average plus the 15-day low average divided by 2.)
6. Fade the majority direction of the last three open-to-closes.



Infrequent Biases

The five infrequent biases are listed below. For bullish signals (opposite is bearish):

1. Four successively higher closes were followed by yesterday's down close. Today's action was irrelevant.
2. Five successively lower closes were followed by today's up close.
3. 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 is the reverse and bearish.)
4. The highest low minus the lowest low of the last three days is less than or equal to 20% of the highest high minus the lowest low of the last three days.
5. For the previous two days, the market closed lower than it opened.



Calendar Biases

The calendar biases in the indexes are listed below.



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 Beating the Financial Futures Market: Combining Small Biases into Powerful Money Making Strategies. E-mail him at art@traderinsight.com.