Grinding Higher
Position of the Model. The KP Trend Model remains Green. From the Trading Room. Noteworthy this week are the two KP primary oscillator studies. Both the Short-Term Internal Oscillator and Tactical Exposure Oscillator have completed meaningful pullbacks from significant overextensions into overbought zones and are once again advancing higher from their respective neutral zones, with room ahead. Upside price momentum remains intact, led predominantly by the small number of large-cap technology issues, supporting new all-time highs for the S&P 500 and Nasdaq 100 indices again this...
Read MoreDrifting
The Model: The Trend Model is solidly Green, full exposure to US equities. From the Trading Room: Positive Price Momentum continues to drive most market indices higher. The KP Long-Term Model component, based solely on price, is positive and rising. Other KP studies are compiled from non-price ‘internal data’, generated from daily trading activity. These technical oscillator studies are designed to gauge the intensity\resolve in the trading activity. The analytic tools are subtly displaying investor sentiment, in essence a look behind the trading decisions that day. Lately,...
Read MoreDurability of Momentum
The Model: The KP Trend Model is solidly Green, maximum exposure to US equities. From the Trading Room: In last week’s missive, Werner commented on the spikes in the Red Model line, highlighting these events on the chart of the KP-1 Intermediate-Term Model. There are two other “lines” shown in this study, the blue Zero Trigger line and Grey Model Line EMA. The grey line is an exponential smoothing of the Red Model Line that plays an important role when traveling below the blue line. The Grey EMA line moved above the blue line last December and is seen rising, pulling...
Read MoreIntermediate Momentum
The Model: The KP Trend Model is solidly Green, maximum exposure to US equities. From the Trading Room: Tactical Exposure remains at Plus 1, overbought in the context of a advancing market trend, as the oscillator continues to contract from an extremely overbought condition. The slower moving, more deliberate KP-1 Intermediate Trend Model broke out to a high for the move, into levels not seen since December 2020, then on the way to this Models all-time high, and subsequent market highs in January 2022. There is still more room for the Short-Term oscillators to pull back from...
Read More