National TV Alert: Caveat Emptor: Buyer Beware For CME
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Sometimes I see stocks recommended on national TV coverage and I would bet that people rush out and buy on these "tips". I watched as-CME was recommended. I just couldn't think of any reasons why. CAVEAT EMPTOR is a Latin phrase that means: "The principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made." If you are considering-CME, here is what I ask you to consider: Here are ONE DOZEN negatives I see in-CME, and why I feel this is a sell: 1. Sell Fractal in effect (red rectangle on chart). 2. Alligator jaws NOW OPENED in tandem with sell Fractals. Alligator feeding in new down-trend. THIS IS YOUR DIRECTIONAL COMPASS. 3. Chop indicator (under chart) is below the 38.2 shaded area. This indicates a strong down trend. 4. Phase energy (lower top indicator) is below the zero line. ** 5. 34 day moving average (top indicator)-is bearish . 6. Prices are trading into the Ichimoku Cloud . This is a sell signal. 8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal. 9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal. 10. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal. 11. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal. 12. The CHOP ZONE indicator (under chart) is red, indicating a down trend.
** The lower top indicator is a forward projection as follows: For an estimation of possible FORWARD TRENDING I use the Ichimoku Cloud Senkou Span A (Leading Span A): (Conversion Line + Base Line)/2)). This is the midpoint between the Conversion Line and the Base Line. The Leading Span A forms one of the two Cloud boundaries. It is referred to as "Leading" because it is plotted 26 periods in the future and forms the faster Cloud boundary. I then make an oscillator out of this and plot the progress up and down around a “zero line”. I HAVE THE RESULTS OF THESE CALCULATIONS FOR-CME IN THE TOP LOWER INDICATOR. IT IS VERY NEGATIVE. The same person would recommended CME-yesterday also recommended GDX-one day before is dropped 15% in one day. Do I see an upside reversal for-CME? No, I do not. Conclusions: CAVEAT EMPTOR - LET THE BUYER BEWARE. I hope all of your trades go well. Don.