Automation..

Hi Guys,

Here we are about two weeks before the election watching the averages levitate as if being lifted by the hand of God himself. (Hmm... those who have studied the matter know that the people in a position to pull that off think themselves next to God or "gods in the making" if you will... read into that what you want) Anyway... after the vote maybe we'll get the long overdue correction. For now... forcecasting is futile.

Not all news is bad but not all news is great either. On a fundamental note.... The war in Iraq is going horribly (96 Americans and God only knows how many innocent Iraqis in October alone) and this morning they reported that Home prices in the US declined year over year a whopping 9%! How many home morgage owners, apon hearing this news are going to wake up and realize they are underwater on their housing purchase and probably saddled with a rapidly rising adjustable morgage ta boot! The house refinance cash machine has definitely been unplugged and this is not good news for consumer spending . Consequently it should not be good news for the stock market either. But the averages seem increasingly disconnected from reality so who knows...

I've been working on new software features. I just completed an automation spreadsheet that will fetch data from Yahoo finance, update a list of spreadsheets, label and print the charts, write the HTML and FTP it all website. All this can be set up using windows task manager to happen while you sleep sothat in the morning, while sipping your coffee, you can puruse your newly updated charts... AT WORK! Eventually I'll put a page on the website with some "auto-updated" charts I watch. For now I'm switching gears back to documentation ... which is the last step I need to complete before I can offer these addins to the public. Take Care.

-Rick

Midas Topfinder

8 Here is another quick Midas chart. Its of the S&P 500 on weekly bars. Topfinder indicates there is not much (if any) fuel left in this rally… volume is spent and it is due for a correction. Tight stops! But the Bull market does appears intact. I hear a lot of top callers on the various boards making a lot of noise. I think their going to be proven wrong.

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Midas Speaks

For a while, long before blogging became popular, Dr. Paul Levine (then later his partner Stokes Fishburn) would publish their thoughts on a (now defunked) website in a column called Midas Speaks. In keeping with that tradition, here is my first "Midas Speaks" blog entry. I want to ellaborate on why I (now) think an intermediate top is still weeks away. My cycle indicator is pointing downat this time but that thing has been early in the past and I think its early again.

It comes down to this: accumulation/distribution (as measured by OBV) preceeds the up or downturn of price. This is our MIDAS leading indicator. So far in the current move off the bottom, OBV is still moving up sharply. Until it flattens our and starts to turn down, we can expect the market to continue to move higher. This means we should continue to buy the bounces off the S/R curves (on the attached chart we've got an orange one coming up)

Here's something thats been bothering me… Take a look at This chart of S&P volume. What the heck started happening in the spring of last year? Is it manipulation by the PPT, who are wholey unaccountable to anyone, and have bottomless pockets (our tax dollars) with which to manipulate the markets? I ask the question because I do not know… but it would not surprize me one bit in these everincreasingly Orwellian times in which we live. Volume is a key ingredient in the Midas Method. I hope this is just "bad data."

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The MIDAS Method

The problem is not that there is no way to time the market…
the problem is there are too many ways to time the market! -me

Today I want to share with you one of my favorite timing tools. Not too many people know about this one and I'm pretty sure its not featured in any of the mainstream trading platforms. But I believe, in time, its inventor will come to be recognized as one of the all time technical analysis greats. I refer of course to none other than Dr. Paul Levine. His MIDAS method is nothing short of amazing. When you get comfortable with it, your blood pressure is sure to drop atleast a dozen points. It truely does make the market seem well… predictable!8 Click Here to see what MIDAS is saying about the S&P 500. Here's a clue… buckle up cause the coaster is about to go down but… don't get too bearish just yet.

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Base Price Squaring

S&P 500 again… this time daily bars. I was looking a little closer at last week's high and I noticed it came in almost square the base price for the last “intermediate” swing. What I mean is if we take that low 1219.29 on 6/14, and move the decimal to the left one place we get 121.929 which when added to that same low gives a price target of: 1341.21. using the TIME SQUARE PRICE tool in XLAngles.xla 8 Click Here to see what it looks like.

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Weekly Gann Boxs

I was looking at some weekly Gann boxes over the weekend. This “fractal nesting” chart shows last week's high price came very close to strong resistance (at 1243). 8 Click Here to see the chart. I (still) think the market is due for a (multiweek) selloff.

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