First of all, a huge thank you for all the feedback from my last "rant" (The Boy Who Cried Wolf). 100% in support and I've copied some of the choicest comments below.

This was my first Emini day trade in 3 days. I haven't had any good setups since last Wednesday. For whatever reason Thursday and Friday last week were "unusual" and I didn't get any clear signals.

Hilbert Sine Wave "End of Trend" Signal (Emini 500 tick)

Today's signal had the usual components, from my 3 non-correlated indicators:

• Professional buying on down bars (blue PaintBars using Better Pro Am)
• Exhaustion selling volume (large cyan dot using Better Momentum)
• Followed by less selling pressure and Bullish Divergence (red dots)
• "End of Trend" warning signal (from price cycles using Better Sine Wave)

The 500 tick chart above is a little cramped, but I hope you get the picture. The Professional buying on down bars was very evident on the 1,500 and 4,500 tick charts. Let's hope we don't see a repeat of Thursday or Friday for a very long time.

And Now Some Reader Comments …

I am very fortunate to have some really insightful and passionate subscribers. Paul's reminder to "trade what you see" can't be over-emphasized. Here's a selection of some of the great comments:

“You are dead on … we're in a 'Bullshit' rally.” Bob H.

“Can't help but agree … now what we need is to get you a spot on NBC or CNN … Love your site!” Vaden H.

“It breaks my heart to know that every last word is absolutely the truth.” Robert G.

“That was great! I agree 200% … Corruption will continue because of the investing public's insatiable demand for quick profits … This recent run certainly lacks reason.” Alvin K.

“As rants go I'd give that one an A+ … It was precise without leaving any of the principles unscathed yet there was no repetition or embellishment … Good job.” John R.

“I loved your rant and agree with you 100%.” Bill W.

“I think many of us who look forward to your guidance and writings are all on the same page. But unfortunately with many happy to turn a blind eye to the truth and the majority ignorant of it we can only trade what we see and try to be emotionally removed. But what you say is true and greed is a strong motivator.” Paul M.

“I agree with your comments. It's nice to know that I'm not the only one.” Ken O.

“Your comments are very timely. But just to add gasoline to the fire … you forgot the SEC. Thanks, as always for your insightful stuff.” Tom W.

“I think Ayn Rand would have said pretty much what you have said. But don't make the mistake of letting Greenspan speak for her; she clearly would have repudiated him decades ago. And he has been busy repudiating his former philosophy and evading his own responsibility for the destruction.” Bill S.

“I loved the rant and couldn't agree more … I'm of the belief that the whole market is a scam. It's not intended for the public to make a profit, it's intended for the insiders to take our money … Behind closed doors they probably laugh their asses off about how stupid we are.” David

“Well said Barry. Glad to see someone has the 'kahunas'[sic] to actually say it in a public forum … I once believed in a Government that for the most part could be trusted. Obviously that is no longer the case.” Mike S.

Lastly, for the Mission Impossible Fans …

Sad news this weekend. Peter Graves, star of the original Mission Impossible TV series, died at age 83. He was the king of cool, playing Jim Phelps, the agent who never turned down a mission. One of the many joys of staying in France last year was they're still showing Mission Impossible re-runs. "Good luck, Jim. This tape will self-destruct in five seconds …"

Mission Impossible Intro – French Version (1:01)

Bingo. We got the drop. Almost 23 points from the overnight Emini high near 1,113 to the day's low near 1,090. I wish they all worked out like that.

But where to now? There was quite a lot of Professional buying coming in at 1,092 and we ended pretty strong. In fact, we printed a "Profit Taking" bullish volume pattern on the daily chart. My best guess is we're going to rally a little ways and form an "End of Trend" warning signal on the 45 minute chart.

Hilbert Sine Wave (Emini daily)

On the daily chart you can see the Better Sine Wave (my version of Hilbert Sine Wave) is just about to make a cyclical top. Maybe Wednesday, maybe Thursday.

Hilbert Sine Wave (Emini 45 minute)

If you drop down to the 45 minute chart, the Emini bounced on a "Pull Back" cyclical support level – which means there's a strong chance we'll rally and form an "End of Trend" warning signal. And my favorite setup – cyclical turn in higher time frame coinciding with "End of Trend" warning signal in lower time frame.

Mostly I look for these on my Emini day trading charts – "End of Trend" on 500 tick chart and cycle turn on 4,500 tick chart (2 time frames above or 9 times). They can also appear on 1,500 tick and 13,500 tick charts. But they're equally valid on longer time frame charts. The daily chart has 405 minutes of trading and so the lower time frame would be 405/9 = 45 minutes.

Let's see how this works out. Good luck with your Emini trading.

Just a quick post today to say: we got the "End of Trend" warning signal on the 45 minute Emini chart. The signal marked the low of the day and came during a final push down after the FOMC announcement. That move flushed out the weak hands and was the start of a late day rally.

So, for me, the first step in marking a bottom here is complete. I'm looking for a low volume re-test of the lows some time tomorrow or Friday – which would usher in the start of the next rally phase.

From there we need to judge the strength of any rally. Support at 1,080 will obviously be critical. If the rally is weak it will mark 1,147 at a critical top. But that's getting ahead of ourselves. Here's the Hilbert Sine Wave chart.

Hilbert Sine Wave: End of Trend Warning Signal (Emini 45 min)

You can watch yesterday's Emini Swing Trading video post here. It explains the Hilbert Sine Wave signals I was looking for on the 45 minute and daily Emini charts.

Good luck with your Emini trading.

Follow up to last Wednesday’s post about the Hilbert Sine Wave on the 81 minute Emini chart. After an "End of Trend" warning signal we expect cyclical activity – well, we’ve had some huge day trading ranges over the last week. And the Hilbert Sine Wave has marked the major Support and Resistance levels at 1,040 and 1,060.

Hilbert Sine Wave – Cycles After End of Trend (Emini 81 min)

We’re now approaching another cyclical Support on the 81 minute chart. We’ve had the cross on the Hilbert Sine Wave, we’re now looking for a sign of strength. The same pattern can be seen on the 135 minute chart – my primary Emini swing trading time frame.

Hilbert Sine Wave – Pull Back Approaching (Emini daily)

In addition to the 81 and 135 minute time frames, we also have a cyclical low approaching on the Emini daily chart. If Support holds over the next 2 to 3 days this would mark a Pull Back in an uptrend on the daily chart and a continuation of the uptrend. We wouldn’t see an "End of Trend" warning signal form until later this month.

In my opinion, we’ve got too many people calling for an end to this uptrend. The market will always fool the maximum number of people. My hypothesis at this stage is that we’ll make a final break to the upside before some Exhaustion selling.

Climax Volume Down Days (Emini daily)

We’ve had 2 Climax Volume down days and the activity has been intense. I wonder if the Shorts have "run out of bullets" and the Pro’s have been accumulating.

Volume Trailing Stop (Emini 135 min)

Lastly, a chart showing how the Volume Trailing Stop held as we tested the 1,060 level during the last upswing. The critical level is now around 1,036 – if we close above this level on the 135 minute chart it shows a bottom might be forming.

Good luck with your Emini trading.

We finally got some decent intra-day volatility – and not surprisingly on an FOMC announcement day. The Hilbert Sine Wave signaled a nice "Pull Back" (PB) to "End of Trend" (END) combination, shown on the chart below.

Hilbert Sine Wave "End of Trend" (Emini 81 min)

This does not necessarily mean that the Bull market is over – it just means that we'll probably go into a period of cyclical activity or consolidation before a new trend develops.

Climax Volume (Emini 135 min)

We ended the day with a Climax Volume Down Bar. The last time we saw volume like this, the Professionals stepped in, the 990 level held and the rally continued.

The question I have is, have we spent enough time above 1,050 for the Professionals to distribute their Long positions to the Amateurs? We've not seen a blow off move and clear panic buying by Amateurs. But we've tested 1,070 a number of times and not held above it.

Volume-Based Trailing Stop (Emini daily)

The volume-based trailing stop has moved up to the 1,052 level. My best guess is that we'll play with this level and see some cyclical consolidation.

Hilbert Sine Wave Customer Follow-Up Video

Just to let Better Sine Wave customers know that I'll be posting a follow-up video on today's "End of Trend" warning signal. You'll receive an email with link to the video shortly.

Happy Bastille Day everyone and "Vive la Revolution!"

In case you missed it: 336 laid-off employees at the New Fabris car-parts factory in Chatellerault, central France, have come up with an in-your-face way of negotiating their severance pay. Either they're given $41,000 per employee as part of the company's closure or they'll blow the entire plant to smithereens.

As an Englishman, now living in Australia, this brings a smile to my face. But it's also very sad – these workers just want to hold a steady job, be contributing members of society, raise families, pay their bills.

I don't know the answer – but it makes me wonder "Why isn't this happening all over? Why isn't this happening in America? Why are the American people standing by, ignorant of the financial system, letting fat cats who are 'too big to fail' be bailed out?"

Remember Howard Beale (played by Peter Finch) in Network 1976. ”I'm as mad as hell, and I’m not going to take this any more!” Where is the Revolution people?

Network 1976 "I'm as mad as hell…"

So what about the markets? The next test for the Emini will be a cyclical turning point in the 135 minute chart, shown below.

Approaching Hilbert Sine Wave Turning Point (Emini 135 min)

We should see this cycle turn on the Hilbert Sine Wave confirmed Wednesday (or at the latest Thursday). Remember, high probability trades set up when cycle moves in higher time frames line up with trend moves in lower time frames.

Approaching Hilbert Sine Wave End of Trend Warning Signal (Emini 15 min)

In the lower time frame – 15 minute chart in this case – we're approaching an "End of Trend" warning signal on the Hilbert Sine Wave. So potentially we have an end of trend coinciding with a cyclical turn in the higher time frame.

No Demand Volume Pattern (Emini 135 min)

Last chart just shows there is some weakness and lack of buying pressure. Let's see how this plays out over the next two days. Good luck with your Emini trading.

The Better Sine Wave indicators are now available for the NinjaTrader platform. These have been a long time coming and not without their trials and tribulations along the way. Thank you to all the NinjaTrader users for your patience and encouragement.

Click this link to go directly to the Better Sine Wave for NinjaTrader purchase page.

Or read the feature article with videos & download links for the Hilbert Sine Wave here.

Many thanks to Bruce DeVault of Quantevo for help with coding for the NinjaTrader platform. Thanks also to TJ Young for beta testing the indicators.

Have a great Memorial Day long weekend and good luck with your Emini trading.

Wow, that didn't take long. I was expecting the Emini to base around the 800 to 835 level before making a cyclical turn. Instead we got an explosive "V" reversal and huge volume at 4.1 million contracts traded. Just goes to prove that bottoms are made more quickly than tops.

With this cyclical tuning point, the Hilbert Sine Wave has now signaled an "End of Trend" and the bias is now to the upside. Typically after a strong trend move (down trend in this case) we see a return to cyclical activity before another trend move can develop. I particularly look for the second cyclical turn after an "End of Trend" signal for a good reversal entry point.

Hilbert Sine Wave and End of Trend Signal (Emini daily)

The Better TRIN Oscillator has turned up and we've taken profits on the Better TRIN Systems, which continue to make new equity highs. Good luck with your Emini trading.