Sonoran Desert Monsoon

A monsoon is a seasonal prevailing wind that lasts for several months

The North American Monsoon (NAM) occurs from late June or early July into September, originating over Mexico and spreading into the southwest United States by mid-July. It affects Mexico along the Sierra Madre Occidental as well as Arizona, New Mexico, Nevada, Utah, Colorado, West Texas, and California. It is also sometimes called the Desert Monsoon as a large part of the affected area are the Mojave and Sonoran Deserts.

Staying with the theme of trading the leveraged ETF's of the Russell 2000 Index, TNA for Longs and TZA for Shorts, here are today's 60 minute charts for a continuing Long mode:



Above is the chart of the RUT index, an almost perfect week long Buy Signal. Almost, because there are five bars on the chart that turned red, indicating a brief Short. But looking carefully at the bottom CCI indicator, there never was a confirmation of the Sell Signal. In other words, the CCI never broke below it's zero line.

Is this a rule?

That's up to the trader. Enough of these non-conformations and yes, it should be a rule. But even if one flipped Short for five bars, not much harm was done.


Bringing up the above chart of TNA there is again, an almost perfect week long Buy Signal, interrupted only twice by brief Sell Signals, again unconfirmed by the CCI indicator. The gain on this chart is almost 7 points, or about 30% for the past week.

Another noteworthy chart, the Nasdaq 100:


From it's Buy Signal one week ago, a flawless uptrend. But also note how close the reversal stop is for a new Sell Signal.

A close-up of today's hourly action:




And finally, the Dow Jones Industrial Average, hourly chart for the past week:


Wednesday is the date of the super moon. With hourly reversals so close and the unknown effects of the super moon almost upon us, this has the making of great trade set-up. As always, we trade the trend, not the forecast.


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