The GDX robot covered its long position on a stop hit at the open yesterday. The GDX Money Flow is in short mode. But the EOD robot found no statistical edge for entering a short position today and it will wait in cash for the next signal.
Because it doesn’t take ST/LT edges into consideration, the RT model holds its short position until the PM Money Flow either
- Hits the Oversold level at -1.45%
- Or trades back above the MF average + porosity
The porosity for today is 0.123%.
The RT Money Flow closed at -0.66% much closer to the average than to the OS level. If large players are buying the likely forced selling from margin calls early today, the RT model could quickly reverse its short position to long. Otherwise, expecting a violent capitulation move to the oversold level looks quite realistic.
The fact that the EOD robot could not find any edge for shorting hints at limited downside potential from the current price level. The total strength of the floor support clusters (11 +18 = 29) far outweighs the total strength of floor resistance clusters (3 + 4 =7) and it should help a potential rebound from this week’s sell-off.
Billy
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