alert watch ... next possible short entry ..., page-44

re: down to rio in shorts Arthur, it's not the chart for RIO that's going to call the tune, at the risk of repeating myself it's the Dow. because it will take a sharp reversal in that mother to knock our precious XAO & with it the various insto darlings, chief among them BHP & RIO & a Bank or two, off their conceited overblown pedestals.

this said, it is exactly what amory is hoping for, holding so far a small position in the RIO1Q (jan put $37). if they go up instead of down, I'll prepare to buy more puts, but not until the first genuine sign - reversal of Dow followed by downbreak of the relevant stock - makes its appearance.

the chart of RIO with the RSI coming off the top & nudging the signal-line, is encouraging enough, but needs to make decisive move. in view of overnite strength in the Dow, tomorrow may not be the day for such a downbreak.

~/. .\~

P.S. The RSI on your chart should come with a signal-line (9 days-simple is amory's choice). if you superimpose the RVI (relative volatility index-14, same scale) you've got a very powerful combination. for inst, when the two of them break thru 50 (on the RSI) together, can be very bullish or bearish as the case might be. this does not apply to the shares under discussion, but it may do so in the future.

happy new year.