To show you what you’re missing, we decided to begin this series of occasional posts – once in a while showing you exactly what Members are seeing.To see the latest post you need to LOG IN with your email and old password. IF you forgot your password, click on the HELP button on the front page to see how to get a new oneEnjoy – and we look forward to welcoming you in SpikeTradeAlex & Kerry

THIS IS THE WEDNESDAY 10/20/2021 NHNL POST

New high for the month

Hello SpikeTraders,

Thanks to many Members who posted kind comments on my NHNL report yesterday.  Following trading plans is emotionally hard because following them does not guarantee success.  It promises more wins than losses – as long as we use proper money management to limit the extent of those losses.

Another former Spiker who spent most of his working life writing software for the oil industry pumping stations said to me: “If I came to my boss and told him that I wrote a program that would cause a pump to explode three times out of ten but do a great job seven times – he’d laugh me out of his office.  And now that’s what I have to learn to accept in trading.”

Sadly, it didn’t work out for him.  We should really do a Password class on this key topic of implementing our plans.

Well, let’s turn to the charts…

The market opened on a slight up-gap, poked down a bit, then rallied to close at a new high for the month.  The Impulse system remained green on the weekly and daily charts.  The New Highs expanded, New Lows declined.  The daily NHNL ended the day in its bullish zones in all three look-back windows that we track.  The slower weekly NHNL (on the left) is still neutral, approaching its bullish zone.

Mark C., a Member in New Hampshire, posted a comment: “Alex, 1 month Market Capitalization came in yesterday at $26 trillion. Is this rally ready for a pause?”  Mark is the person who developed Cap-NHNL and turned me onto this indicator more than two years ago.  The chart above is updated through Tuesday.  You can see that yes, indeed, when Cap-NH (the green line) rises above the $20 trln (the dashed line), we often see a pause or a mild correction.  Only in a few instances that correction was moderately severe (marked by red circles.  That’s why we need to use stops.

To repeat, once again, what I wrote here last week: “I think that reaching and exceeding the September peak becomes a reasonable expectation.”

Best wishes,

Alex

[ Dr Alexander Elder ]