Buy Signal Description

Conditions once again favor rising prices and the low made yesterday still has a chance at holding for a long time.

We are once again seeing, same as yesterday, that "call sellers" have emerged which are keeping the VIX down at 53 from its peak yesterday near 64. The level of call volume is certainly indicative of heavy interest in generating "income" from this rally in the stock market from nervous longs.

The effect of "call selling" on the market is to see price advances "checked" and stopped for the short term. Hence today we've seen the advance from the initial gap-down halted at the previous close where prices ran into "supply" from call sellers and other nervous longs.

The longer this continues, the more bullish it becomes.

For today, buy dips of 1.0 pts in the DIA, we just had a 1 pt drop from 92.77 down to 91.66 and exit on a rally of 1.0 pts from the low of each correction.

If you are already in based on the buy signal at 91.77, then use 92.66 as your exit target.

REPEAT THE PROCESS UNTIL THE END OF THE DAY.

I am watching the Japanese Yen rally here (at 11:25AM) which is reaching the previous rally high for the day. If the Yen makes it to a new high, then this signal may be reconsidered. Just a heads up.

11:28AM now (many phone calls distracted this publishing)