PikerIndicator

Not Overbought

Pikertrader — Thu, 19 Jan 2012 00:49:43 +0000

The market was overbought 3 days ago but the drop on Friday sent it back to not overbought, this has allowed the market to rally to new highs as there was supply in the market to run the price higher.

Still Overbought

Pikertrader — Fri, 13 Jan 2012 01:12:49 +0000

The market hasn't really moved but the PI has staying in the overbought range the past 3 days.

Overbought/Short

Pikertrader — Sun, 08 Jan 2012 19:25:32 +0000

The market is overbought at this level based on the Piker Indicator. Click on the left to see the other times it was overbought. The purple candle marks the overbought signals. It doesn't always mark a downturn but its close especially during these market conditions. When the PI hits overbought under certain conditions it becomes a short signal- the market is current flashing those signals. Huge caveat here is that these signals are close to during bullish but for now follow the plan.

Bullish Cross

Pikertrader — Tue, 27 Dec 2011 15:35:48 +0000

On Friday the PI had a bullish cross which means the market forces are bullish at this point and the trend will be up for a few days. The Project has the market rallying for the next couple of days and into the middle of January. The blue arrows are the other crosses and the white are sell crosses.

This cross mixed with our VIX study and the market possibly breaking out of a its triangle is bullish.

Deeply Oversold

Pikertrader — Mon, 28 Nov 2011 11:40:04 +0000

The Piker Indicator is showing a deeply oversold condition with a negative -7 reading on Thursday. It has since moved back above negative on Friday. But this does not happen often and is very oversold short-term. The last time this occurred was in August, before that it was during the flash crash and one other time before the 2007-2009 bear market. (Caveat to this data is that TOS only lets the PI go back to 2006 for the PI data, so we don't have a large sample set)

Looking at this in a historical perspective you can see that after a negative reading the market does rally but new lows have happened each time. This would make sense with the current market conditions and my own personal theory that the market will rally into the year end but longer-term the market is not looking bullish.

11/17 Sell Signal

Pikertrader — Mon, 21 Nov 2011 10:26:41 +0000

Post on the Main Site on 11/17.

The Piker Indicator gave a sell signal today. The blue arrows indicate when then signal is activated. Still tweaking the system to filter out the sells turning the uptrend but during downtrends like 2008, it is accurate. Given we had a sell signal, with a confirmed broken triangle and the PI at a netural number the move to the gap fill at 117 is very possible.

NEUTRAL

Pikertrader — Thu, 10 Nov 2011 00:59:48 +0000

The PI is simply Neutral at this point showing a 40.86

Overbought a few times

Pikertrader — Mon, 31 Oct 2011 23:29:22 +0000

The Piker Indicator has been flashing overbought during all the spikes in this market. It would flash overbought and come back and stays above its green MA. When this occurs it signals an uptrend, but now this uptrend is weakening as we can see 10/24 the PI did not make a new high and its MA has started to decline from its high signalling divergence.

Oversold

Pikertrader — Tue, 04 Oct 2011 11:46:18 +0000

The PI is oversold at this level showing a 19 any move lower would bring the PI to its lower extermes and represent a strong possiblity of a bounce. Normally a 19 would be very oversold but because we are in a new downtrend the thresholds are higher. As we saw for the last bounce a PI of 10 was a better indicator of oversold.

SELL SIGNAL AND OVERSOLD

Pikertrader — Fri, 23 Sep 2011 02:40:41 +0000

The Piker Indicator is deeply oversold showing a 10 but be careful we have a sell signal as well. The last time we saw the sell signal and an oversold level the market drop to its August lows.