Posted by epmaruggi on 10th of May 2011 at 10:43 pm
Matt,
Have you ever considered creating a "Read this First" section of
the website that gives an overview of all the features of BPT for
new members? I've been a member for several months and am still
learning about features like the 1961 system.
Such an overview should be geared toward helping new members
develop a trading strategy in which they could get the most from
what BPT has to offer. I know I was pretty lost when I first joined
and could have benefited (and probably still would) from this.
You probably could copy what you just wrote about the 1961
system and paste it into the new section.
S&P 500:
Whilst the set up we a
re looki
ng for remains neutral overall, Com
mercial traders, the lead group for the S&P 500 are close the
most bullish levels in 6 months. However althou
gh the Large traders group is close to a complete set up a 37.99
reading on the index is not quite enough (need it to be 30 for a
full set up) (Commercial traders lead this COT report).
Bias:
Neutral (but close to a bullish set up)
EURUSD:
The COT report set up for this instrument remains strongly
bullish. (Large traders lead this COT report)
Bias:
Bullish
GBPUSD:
GBPUSD COT like a couple of the other reports is close t
o a bull
ish set up but just not quite there (Large traders lead this COT
report)
Bias:
Neutral (but close to bullish set up)
USDJPY:
Very much contrary to our retail report and the current short term
market direction. The USDJPY COT remains very bullish.
(Large traders lead this COT report)
Bias:
Bullish
GOLD:
A continuation of the neutral set up for Gold, however we are very
close to the magic numbers to give us a full on bullish set up. Our
COT set up seems to be behind the curve with Gold as a strong
bullish trend rages on. (Large trader lead this COT report)
Bias:
Neutral (but close to bullish set up)
CRUDE OIL:
The bulls remain on top with crude and we are seeing a co
ntinuation of the strong bullish set up we have had for a few weeks
now.
(Large traders lead this COT report)
USDJPY:
The currency pair continues lower, and just as before the lower we
go the greater the percentage of traders going long. We are now
hitting almost 73% of trader long and so expect a continuation of
downside momentum
Bias:
Bearish
EURUSD:
Retail trader positioning in the case of the Euro confirms the COT
report and the 2 have been in 5tandem for weeks now. With 63.75% of
traders short the pair at the end of the week our bias remains to
the long side.
Bias:
Bullish
GBPUSD:
Although we are only just scraping into our bullish set up with
60.52% of traders short. Combined with the close to bullish set up
on the COT, the bulls have a good chance of continuing
higher.
When looking at the indexes, we see a
lot of positive structure:
We have a lot of positive structure showing on the charts
above.
1. Potential Head And Shoulders Bottom
Remember a big part of what we do are alternative entry
points. A good example is most novices will wait for the
neckline breakout to the upside to buy. Not us. We use
the small blue right shoulder channel lines to do so. By the time
the novices see the neckline breakout the leaders are long gone --
not to mention we'll be a lot further ahead of the game vs them.
2. Off the recent number 4's listed in each chart above
we have first thrusts up, now in Pullback Off Highs (little
blue lines)
3. Full Stoh's closer to oversold than overbought
4. A potential ABC up with us being in B
All of this is positive if you ask us, now it's just a matter
of the market making the call. Should we bust above the small blue
channels (the what I need to see to take a trade) then that
potentially gets the ball rolling.
The number of investors with a bearish
outlook plunged by more than a third in one week according to a
widely followed investor survey released Wednesday, the largest
amount of bears to throw in the towel in this poll since 2003.
The survey ending April 5 came as the
indomitable
Dow Jones Industrial Average
touched
its highest intraday point since the two-year bull market began.
Middle East turmoil, an Irish bailout, fears of a municipal
bond crisis, a nuclear disaster in Japan and an impending end to
the Federal Reserve’s quantitative easing has failed to keep the
market down this year. And the bears are simply done fighting the
tape.
Bears collapsed to just 15.7 percent of
those surveyed from a 23.1 percent part of the pie just one week
ago, according to the weekly survey of financial newsletter writers
by research firm Investors Intelligence. That 32 percent drop is
the biggest in a single week since a 37 percent switchover in 2003,
according to Bespoke Investment Group’s analysis of the II
data.
“That action in the face of still ongoing
negative news from around the world was certainly impressive and it
reinforced the perception that US stocks were still offering
value,” wrote Mike Burke and John Gray of Investors Intelligence,
in the report. “A week ago we noted the speed of the (equity) move
from the March lows didn't allow for much reaction from the
advisors. However, another week of markets moving higher was
clearly enough for many newsletter editors to make a shift.”
Dow Jones Industria...
(
.DJIA)
12426.75
32.85 (
+0.26%%) Dow
Jones Global Indexes
Note that bullish investors now take up 57
percent of the total pie in this week’s survey, while the other 27
percent fit a category of investors who are expecting a pullback,
but are still generally long-term bullish.
This survey is often used as a contrarian
indicator, so a jump of this magnitude may give other bulls the
chills on concern the long trade has gotten too crowded. After all,
if everyone is bullish, who is there left out there to convert into
buyers and lift the market higher?
Burke and Gray say this much in their
accompanying commentary: “At the end of last August's market lows
the bulls were as few as 29.4%, suggesting a time to buy. The
latest reading suggests increased danger. At the October 2007 top
the bulls were 62.0%.”
History shows that they may be onto
something, as the market’s returns tend to slow or turn negative
when sentiment reaches such an extreme.
“While the market has averaged modestly
positive returns over the next one, three and six months” following
30 percent drops in bearish sentiment, wrote the Bespoke analysts
in their report. “the returns have been below the average returns
for all one, three and six month periods since 1975.”
In the 15 other occasions since 1975, when
the number of bears in this survey collapsed by more than a third,
the S&P 500 has averaged a 0.1 percent return one month out, a
0.8 percent return three months out and a 1.9 percent return six
months out, according to Bespoke.
“The rise in equity prices today
effectively ‘steals’ away part of the forward-looking one, three
and six-month returns,” said Alan Zafran, a partner with Luminous
Capital. “So the returns are positive, but most of the upside in
the stock prices is captured immediately at the time that the
sentiment has improved. Bottom line: It’s tough to time the
market.”
The world environment has a crisis in
Japan and a crisis in the Middle East. In this situation, it is
common for many investors and traders to buy more gold This has not
happened. The price of gold on the COMEX gold chart has fallen from
$1440/oz to near $1420/oz.
The third feature is created by the
Relative Strength Indicator(RSI).This is a weak RSI divergence signal. This signal is
created when the direction of the price trend is the opposite to
the direction of the trend on the RSI indicator. The trend
direction on the gold price chart from the high on March 2 to the
next high on March 7 is up. The trend direction for the RSI
indicator from March 2 to March 7 is down. This creates an RSI
divergence signal.
A strong RSI divergence is a warning of
trend weakness and it often indicates a significant change in the
trend. A strong signal is generated when there is one peak in price
followed by several days of a price retreat, and then a rally with
a new high, which again is followed by a retreat. This creates a
pattern similar to two mountain peaks separated by a valley.
The pattern with the gold price is not
separated by a strong retreat and rally rebound. The price peaks
are near to each other and this makes the RSI divergence signal
weak. The RSI divergence signal confirms a slowing of momentum in
the gold price. Traders will use caution until the uptrend is
confirmed with a strong breakout above $1440/oz.
We have just pierced previous resistance at 1.06 and 1.08 and we
have good support at 0.30/33 which gives us a tradable channel size
of 0.73/0.78; being now above the 0.30/33 - 1.06/08 channel, the
measured move would take us to 1.79/86; a possible double top
indeed but not for a while;
an extremely bullish picture is developing using that Q Ratio:
stock might look overvalued now but using the ratio the technical
picture says that longer term there is plenty of upside left for
stocks to be even more overvalued; this is not something that i
think should happen but with qe3+ possibly around the corner, one
can't discount that possibility, no matter how repugnant it appears
to the rational mind;
and as we know, stocks can remain overvalued for a lot longer
than people (bears/shorters) can remain solvent
At All About
Trends one of the strongest patterns that we scan for on a daily
basis is that of Pullbacks Off Highs or as we like to say POH. A
good example of what those look like is shown in the chart
below.
The buzzwords with this pattern is that of: In a clearly
defined uptrend, above the 50 day and you guessed it pulling back
off highs (pink line crossovers are the long side trigger). This
pattern is the one we commonly refer to as "One Of The Only
Patterns You'll Ever Need To Know In Uptrending Markets" and it's
also the problem we currently face.
This weekend we spent a fair amount of time just looking for
stocks that have formed that pattern. Care to guess how many we
found? Not many. This is how the market talks to us -- via
chart patterns. We looked and looked and couldn't really find
any to sink our teeth into. Sure there are always going to be
some but right now we're not the kid in a candy store at this point
in time. Why? It's all because of what we're seeing out there chart
pattern wise. This should come as no surprise considering the last
12 days the market has been on a tear with the bulk of the action
in the form of a gap up open then stalls.
We have a saying around here with regards to chart pattern
recognition:
"If You Have To Squint It's Not There"
Aside from the face of fear back a few weeks ago it's been
slim pickings into quarter end. Those that were in play back
then at low risk entry points (where we picked off a lot of) stayed
in play offering no low risk entry points since the initial
entries. That's what makes it hard out there, seeing names that
keep going and going but because we are more interested in managing
"Chart Pattern Risk" ala we don't chase buses makes us sit
back.
It's easy to feel locked out of the market so to speak but we
are all about managing that risk. We've seen it all too many times
and experienced it in our distant past too many times that when one
starts to jump in on stocks like that from an emotional standpoint
(those who have been on a tear nowhere near and support levels or
chart structure) that there comes a day when the music stops. We've
all known what those days are like right? Not pleasant.
That's why we don't chase buses. We've learned from our past so you
don't have to. We're sure you all can look back upon your
past experiences and can say the same thing. Look we're all for
going long here but the problem is we just aren't seeing those
patterns in a "Kid In A Candy Store" fashion right now. All we have
to say is better take note.
What we are seeing and have been seeing is a lot of "Change
In Trend" Patterns rearing their heads and developing -- in this
case in the from up to down variety. We put those on the watch list
to be able to stalk and use as a cheat sheet if you will so as to
be prepared.
On to the charts:
So what are we seeing a lot of out there? Below in our
standout stocks of the week are just a few examples, mostly in the
realm of what to stay away from.
=========================================================
Standout stock of the weekend
This issue ought to be interesting the next 2 weeks. Know
why? Well if it sells off, it's selling off into earnings which is
just what we would want to see. A move down to support would be
nice HOWEVER we are not the boss, the market is. This issue is
going to do what it's going to do and we have no control over it.
That's a key to success in the market by the way -- knowing what
you have control over and what you don't.
All we are saying is what we'd like to see/need to see to get
us interested in this issue on the long side again. If it happens?
Great we can work with that. If it doesn't? It's on to the
next stock.
In the short-term SPX chart above one could say we are trying
to stabilize here with an ABC down being present. If Friday's lows
were it to the downside then it was an abc with a double bottom
just like at the end of November 2010. If we still have a little
more work to do to the downside? Then the 60 min charts below are
the ones to key in on.
Moving on to the 60 minute charts:
Notice the POSITIVE RELATIVE STRENGTH DIVERGENCE showing in
both of the above charts?
BY
ROB HANNA| MARCH 09, 2011 | 12:43 PM | The market has been stuck in
a trading range for the last couple of weeks, and that range has
tightened even further in the last week. Looking at the SPX
we have now seen 5 closes in a row that have occurred within the
range of the 3/1/11 bar.
Inspired by some gap-related research by Scott Andrews over at
Master the Gapusing a similar setup, I decided to take a more
detailed look at this set of circumstances. What stuck out to
me is that 1) the SPX has been in a long-term uptrend. 2) There was
a sizable 1-day selloff. 3) The bears failed to follow through on
that selloff, yet the bulls have not managed to move the SPX back
out of the range either.
The community is delayed by three days for non registered users.
Suggestion for website
Long Term Mechanical SPY system..(not short term)
Posted by epmaruggi on 10th of May 2011 at 10:43 pm
Matt,
Have you ever considered creating a "Read this First" section of the website that gives an overview of all the features of BPT for new members? I've been a member for several months and am still learning about features like the 1961 system.
Such an overview should be geared toward helping new members develop a trading strategy in which they could get the most from what BPT has to offer. I know I was pretty lost when I first joined and could have benefited (and probably still would) from this.
You probably could copy what you just wrote about the 1961 system and paste it into the new section.
-Ed
Don't know but this might help
USDX COT?
Posted by epmaruggi on 24th of Apr 2011 at 11:55 pm
This weeks COT Ind e x Review
S&P 500: Whilst the set up we a re looki ng for remains neutral overall, Com mercial traders, the lead group for the S&P 500 are close the most bullish levels in 6 months. However althou gh the Large traders group is close to a complete set up a 37.99 reading on the index is not quite enough (need it to be 30 for a full set up) (Commercial traders lead this COT report).
Bias: Neutral (but close to a bullish set up)
EURUSD: The COT report set up for this instrument remains strongly bullish. (Large traders lead this COT report)
Bias: Bullish
GBPUSD: GBPUSD COT like a couple of the other reports is close t o a bull ish set up but just not quite there (Large traders lead this COT report)
Bias: Neutral (but close to bullish set up)
USDJPY: Very much contrary to our retail report and the current short term market direction. The USDJPY COT remains very bullish. (Large traders lead this COT report)
Bias: Bullish
GOLD: A continuation of the neutral set up for Gold, however we are very close to the magic numbers to give us a full on bullish set up. Our COT set up seems to be behind the curve with Gold as a strong bullish trend rages on. (Large trader lead this COT report)
Bias: Neutral (but close to bullish set up)
CRUDE OIL: The bulls remain on top with crude and we are seeing a co ntinuation of the strong bullish set up we have had for a few weeks now. (Large traders lead this COT report)
Bias: Bullish
FX Retail Trader Position Analysis
This report describes a contrarian view on current retail tr ader positioning in FX Click me to get some background on these reports
USDJPY: The currency pair continues lower, and just as before the lower we go the greater the percentage of traders going long. We are now hitting almost 73% of trader long and so expect a continuation of downside momentum
Bias: Bearish
EURUSD: Retail trader positioning in the case of the Euro confirms the COT report and the 2 have been in 5tandem for weeks now. With 63.75% of traders short the pair at the end of the week our bias remains to the long side.
Bias: Bullish
GBPUSD: Although we are only just scraping into our bullish set up with 60.52% of traders short. Combined with the close to bullish set up on the COT, the bulls have a good chance of continuing higher.
Bias: Bullish
Market Analysis
Posted by epmaruggi on 17th of Apr 2011 at 10:23 pm
When looking at the indexes, we see a lot of positive structure:
We have a lot of positive structure showing on the charts above.
1. Potential Head And Shoulders Bottom
Remember a big part of what we do are alternative entry points. A good example is most novices will wait for the neckline breakout to the upside to buy. Not us. We use the small blue right shoulder channel lines to do so. By the time the novices see the neckline breakout the leaders are long gone -- not to mention we'll be a lot further ahead of the game vs them.
2. Off the recent number 4's listed in each chart above we have first thrusts up, now in Pullback Off Highs (little blue lines)
3. Full Stoh's closer to oversold than overbought
4. A potential ABC up with us being in B
All of this is positive if you ask us, now it's just a matter of the market making the call. Should we bust above the small blue channels (the what I need to see to take a trade) then that potentially gets the ball rolling.
If you drew two more lines (on the left side)
spx5, small triangle...
Posted by epmaruggi on 8th of Apr 2011 at 01:48 am
You'd have a diamond pattern. The measured move would be 13 points in either direction.
Apple normally rises into earnings
APPLE is a DOJI
Posted by epmaruggi on 8th of Apr 2011 at 01:22 am
Then, upon hearing the great news that it's doing well, it promptly sells off. Which, in turn, provides a great buying opportunity.
Bears Give Up
from Cobra...
Posted by epmaruggi on 7th of Apr 2011 at 02:14 am
Bears Give Up: Biggest Switch in Sentiment in 7 Years
Executive Producer, Fast Money
The number of investors with a bearish outlook plunged by more than a third in one week according to a widely followed investor survey released Wednesday, the largest amount of bears to throw in the towel in this poll since 2003.
The survey ending April 5 came as the indomitable Dow Jones Industrial Average touched its highest intraday point since the two-year bull market began.
Middle East turmoil, an Irish bailout, fears of a municipal bond crisis, a nuclear disaster in Japan and an impending end to the Federal Reserve’s quantitative easing has failed to keep the market down this year. And the bears are simply done fighting the tape.
Bears collapsed to just 15.7 percent of those surveyed from a 23.1 percent part of the pie just one week ago, according to the weekly survey of financial newsletter writers by research firm Investors Intelligence. That 32 percent drop is the biggest in a single week since a 37 percent switchover in 2003, according to Bespoke Investment Group’s analysis of the II data.
“That action in the face of still ongoing negative news from around the world was certainly impressive and it reinforced the perception that US stocks were still offering value,” wrote Mike Burke and John Gray of Investors Intelligence, in the report. “A week ago we noted the speed of the (equity) move from the March lows didn't allow for much reaction from the advisors. However, another week of markets moving higher was clearly enough for many newsletter editors to make a shift.”
Dow Jones Global Indexes
Note that bullish investors now take up 57 percent of the total pie in this week’s survey, while the other 27 percent fit a category of investors who are expecting a pullback, but are still generally long-term bullish.
This survey is often used as a contrarian indicator, so a jump of this magnitude may give other bulls the chills on concern the long trade has gotten too crowded. After all, if everyone is bullish, who is there left out there to convert into buyers and lift the market higher?
Burke and Gray say this much in their accompanying commentary: “At the end of last August's market lows the bulls were as few as 29.4%, suggesting a time to buy. The latest reading suggests increased danger. At the October 2007 top the bulls were 62.0%.”
History shows that they may be onto something, as the market’s returns tend to slow or turn negative when sentiment reaches such an extreme.
“While the market has averaged modestly positive returns over the next one, three and six months” following 30 percent drops in bearish sentiment, wrote the Bespoke analysts in their report. “the returns have been below the average returns for all one, three and six month periods since 1975.”
In the 15 other occasions since 1975, when the number of bears in this survey collapsed by more than a third, the S&P 500 has averaged a 0.1 percent return one month out, a 0.8 percent return three months out and a 1.9 percent return six months out, according to Bespoke.
“The rise in equity prices today effectively ‘steals’ away part of the forward-looking one, three and six-month returns,” said Alan Zafran, a partner with Luminous Capital. “So the returns are positive, but most of the upside in the stock prices is captured immediately at the time that the sentiment has improved. Bottom line: It’s tough to time the market.”
Looks like a possible head and shoulders
QQQ
Posted by epmaruggi on 6th of Apr 2011 at 12:53 am
Here's an article that supports further sideways action
Gold Seasonality
Posted by epmaruggi on 6th of Apr 2011 at 12:50 am
Gold Loses Momentum: Charts
CNBC Contributor
The world environment has a crisis in Japan and a crisis in the Middle East. In this situation, it is common for many investors and traders to buy more gold This has not happened. The price of gold on the COMEX gold chart has fallen from $1440/oz to near $1420/oz.
Is this weakness a buying opportunity or is this weakness an indication that the uptrend in gold has become weaker?
There are several indication of trend weakness. This does not mean a new long-term downtrend will develop in gold. This trend weakness suggests it will be more difficult for gold to move above $1440/oz and continue with an uptrend at the same speed as the trend rise from $1320/oz to $1440/oz.
The first indication of the decline in trend momentum is the weak breakout above the triple top resistance level at $1420/oz. The $1420/oz level was tested as resistance in 2010 -November 9, December 10 and December 31. When the breakout above $1420/oz developed on March 1, 2011, the breakout was weak. It was followed by a major retreat to $1390/oz. The second move above resistance at $1420/oz on March 4 2011 has also been followed by a retreat.
The second indication of momentum weakness is the double top resistance pattern that has developed near $1440/oz on March 2 and March 23, 2011. This creates a consolidation resistance band between $1420/oz and $1440/oz. This consolidation band makes it more difficult for the market to move above $1440/oz and resume a strong uptrend.
The first and second features suggest gold may develop a sideways consolidation pattern trading between $1390/oz and $1440/oz.
RELATED LINKS
Current DateTime: 06:11:10 05 Apr 2011
LinksList Documentid: 42426023
The third feature is created by the Relative Strength Indicator (RSI). This is a weak RSI divergence signal. This signal is created when the direction of the price trend is the opposite to the direction of the trend on the RSI indicator. The trend direction on the gold price chart from the high on March 2 to the next high on March 7 is up. The trend direction for the RSI indicator from March 2 to March 7 is down. This creates an RSI divergence signal.
A strong RSI divergence is a warning of trend weakness and it often indicates a significant change in the trend. A strong signal is generated when there is one peak in price followed by several days of a price retreat, and then a rally with a new high, which again is followed by a retreat. This creates a pattern similar to two mountain peaks separated by a valley.
The pattern with the gold price is not separated by a strong retreat and rally rebound. The price peaks are near to each other and this makes the RSI divergence signal weak. The RSI divergence signal confirms a slowing of momentum in the gold price. Traders will use caution until the uptrend is confirmed with a strong breakout above $1440/oz.
This comment was posted for the article you mentioned
Any see this chart before
Posted by epmaruggi on 4th of Apr 2011 at 03:11 am
We have just pierced previous resistance at 1.06 and 1.08 and we have good support at 0.30/33 which gives us a tradable channel size of 0.73/0.78; being now above the 0.30/33 - 1.06/08 channel, the measured move would take us to 1.79/86; a possible double top indeed but not for a while;
an extremely bullish picture is developing using that Q Ratio: stock might look overvalued now but using the ratio the technical picture says that longer term there is plenty of upside left for stocks to be even more overvalued; this is not something that i think should happen but with qe3+ possibly around the corner, one can't discount that possibility, no matter how repugnant it appears to the rational mind;
and as we know, stocks can remain overvalued for a lot longer than people (bears/shorters) can remain solvent
Market Analysis
Posted by epmaruggi on 4th of Apr 2011 at 01:38 am
The buzzwords with this pattern is that of: In a clearly defined uptrend, above the 50 day and you guessed it pulling back off highs (pink line crossovers are the long side trigger). This pattern is the one we commonly refer to as "One Of The Only Patterns You'll Ever Need To Know In Uptrending Markets" and it's also the problem we currently face.
This weekend we spent a fair amount of time just looking for stocks that have formed that pattern. Care to guess how many we found? Not many. This is how the market talks to us -- via chart patterns. We looked and looked and couldn't really find any to sink our teeth into. Sure there are always going to be some but right now we're not the kid in a candy store at this point in time. Why? It's all because of what we're seeing out there chart pattern wise. This should come as no surprise considering the last 12 days the market has been on a tear with the bulk of the action in the form of a gap up open then stalls.
We have a saying around here with regards to chart pattern recognition:
"If You Have To Squint It's Not There"
Aside from the face of fear back a few weeks ago it's been slim pickings into quarter end. Those that were in play back then at low risk entry points (where we picked off a lot of) stayed in play offering no low risk entry points since the initial entries. That's what makes it hard out there, seeing names that keep going and going but because we are more interested in managing "Chart Pattern Risk" ala we don't chase buses makes us sit back.
What we are seeing and have been seeing is a lot of "Change In Trend" Patterns rearing their heads and developing -- in this case in the from up to down variety. We put those on the watch list to be able to stalk and use as a cheat sheet if you will so as to be prepared.
So what are we seeing a lot of out there? Below in our standout stocks of the week are just a few examples, mostly in the realm of what to stay away from.
=========================================================
Standout stock of the weekend
This issue ought to be interesting the next 2 weeks. Know why? Well if it sells off, it's selling off into earnings which is just what we would want to see. A move down to support would be nice HOWEVER we are not the boss, the market is. This issue is going to do what it's going to do and we have no control over it. That's a key to success in the market by the way -- knowing what you have control over and what you don't.
All we are saying is what we'd like to see/need to see to get us interested in this issue on the long side again. If it happens? Great we can work with that. If it doesn't? It's on to the next stock.
Also, $VIX rose while VXX fell
Fractured market
Posted by epmaruggi on 31st of Mar 2011 at 04:28 pm
Fractured market
Posted by epmaruggi on 31st of Mar 2011 at 04:12 pm
SPY and DIA sell off while QQQ rises. Any significance? Rotation into riskier assets?
$SPX breaking down thru trendline
Possible expanding ending diagonal on $RUT
Posted by epmaruggi on 31st of Mar 2011 at 02:31 pm
VXX rising, $VIX not yet confirming.
Possible expanding ending diagonal on $RUT
Posted by epmaruggi on 31st of Mar 2011 at 02:21 pm
Target hit?
SPX and COMPQ analysis
Posted by epmaruggi on 13th of Mar 2011 at 07:23 pm
In the short-term SPX chart above one could say we are trying to stabilize here with an ABC down being present. If Friday's lows were it to the downside then it was an abc with a double bottom just like at the end of November 2010. If we still have a little more work to do to the downside? Then the 60 min charts below are the ones to key in on.
Moving on to the 60 minute charts:
Notice the POSITIVE RELATIVE STRENGTH DIVERGENCE showing in both of the above charts?
Japan brings money home to rebuild
Japan News
Posted by epmaruggi on 13th of Mar 2011 at 07:18 pm
http://www.reuters.com/article/2011/03/13/us-markets-weekahead-idUSTRE72A31H20110313
Another Japan earthquake sends futures tumbling
Posted by epmaruggi on 11th of Mar 2011 at 01:49 am
http://www.foxnews.com/world/2011/03/11/massive-7-magnitude-earthquake-strikes-japan/
Not necessarily
This Pattern Has Frequently Preceded A Pop In The SPX
Posted by epmaruggi on 11th of Mar 2011 at 01:47 am
This Pattern Has Frequently Preceded A Pop In The SPX
Posted by epmaruggi on 11th of Mar 2011 at 01:08 am
This Pattern Has Frequently Preceded A Pop In The SPX
Over the last 22 years or so the SPX has burst higher out of this "failed selloff" and consolidation on a consistent basis. But the implications are only bullish for a few short days. After that there does not appear to be a decided edge for either the bulls or the bears.
Any intrest in putting Sprint on the watchlist?
Sprint
Posted by epmaruggi on 11th of Mar 2011 at 01:07 am