TRINNING

Futures are trading higher this morning on the heels of higher foreign markets.

One buy signal that I follow hit on Friday and that was the TRIN - it has closed above 1.0 three days in a row and that is generally a hint of an over sold market. Trading markets tested it out and came up with this trade:

1) The TRIN closes over 1.0 for three consecutive days;

2) On the third day buy the market on close;

3) Exit when the SPX closes above above its 5 day SMA;

4) The SPX is above its 200 SMA;

Yeah, the fly in the ointment, we are below the SMA 200 although above the 50 and we appear to be in a short term up trend. I think its worth a shot and note the SMA 5 at/near 1397.

Other indicators not quite giving by signals with the VIX at/near the SMA 10 and RSI (2) levels at near 20.

A bunch of other good Trading Markets articles on trading here.

Gold 883;

Crude- 125.25;

EURO -1.545;