Yesterday

    Posted by dylan398 on 22nd of Oct 2008 at 09:13 am

    for the most part I felt like yesterday was bullish....except for a late day swoon....what is the BIG news this AM for thje dramatic selloff so far??

    Dow 60 min chart.png Well dylan

    Posted by matt on 22nd of Oct 2008 at 09:17 am

    Well dylan - we never really broke out of the triangle and basically stopped at the downtrend line and so it's logical that we head back down again

    Matt, do you see positive

    Posted by yawang36 on 22nd of Oct 2008 at 10:03 am

    Matt, do you see positive divergence on 1 min chart spx?

    Yes there is

    Posted by matt on 22nd of Oct 2008 at 10:10 am

    Yes there is

    1 min positive divergence is

    Posted by matt on 22nd of Oct 2008 at 10:21 am

    1 min positive divergence is playing out, though I don't think it goes too far

    Looking like 5th wave may

    Posted by homer on 22nd of Oct 2008 at 09:25 am

    Looking like 5th wave may be close to kicking into gear to me, what's your take?  8600 Dow area the line in the sand for that confirmation?

    Well possibly, so far the

    Posted by matt on 22nd of Oct 2008 at 09:30 am

    Well possibly, so far the triangle continues to play out, and we have basically had triple top resistance levels on the Dow and SPX, now if those were taken out, then the market would rally and break out of the pattern, however for now this bear wedge/4th wave triangle still appears to be the pattern

    selloff

    Posted by glennsexton on 22nd of Oct 2008 at 09:21 am

    this initial selloff this am will start approaching the uptrend line. seems better strategy today-tomorrow will be to look for an entry to go long?

    understood...but that triangle also has

    Posted by dylan398 on 22nd of Oct 2008 at 09:20 am

    understood...but that triangle also has morphed a bit...and most of the set us I saw looked like W formations on the daily.....unless they are going to morph into bear flags..

    Dylan - not too much

    Posted by matt on 22nd of Oct 2008 at 09:35 am

    Dylan - not too much really, it has remained basically intact, sure we adjusted the upper trendline a bit, but that didn't invalidate the pattern; originally the way we had it drawn; the downtrend line was too steep and did not match the uptrend line; personally I like to see the slop of trendlines basically the same and when you look at that 60 min Dow chart that's what you see.  

    SSO crossed

    Posted by gigye on 22nd of Oct 2008 at 09:41 am

    Hi Matt,

    SSO MAs have been crossed, I think. Is it still O.K. to short SSO or buy SDS? Or is it too late to act?

    SDS is up 5 bucks....conserve

    Posted by dylan398 on 22nd of Oct 2008 at 09:51 am

    SDS is up 5 bucks....conserve your capital...wait for a better spot and just congrats to those who held.....heck the futures were all over the place last night...

    SSO system

    Posted by matt on 22nd of Oct 2008 at 10:02 am

    Well rcwint - , my system Ninja also shorted SSO on the gap down; which will end up working out or it won't.  I don't like letting the system run on gap downs, but after looking at the past signals, many of the gaps end up working out in the sytems favor; only if you gap really huge does it not work well and today's gap wasn't that big really.   Now it's too late to short however via the system

    However, if we near the

    Posted by matt on 22nd of Oct 2008 at 10:06 am

    However, if we near the trendline on those triangles I might cover because that is support, I haven't decided yet.  Now I'll probably just let Ravuns play out until the next signal

    I am waiting for a

    Posted by doctormike on 22nd of Oct 2008 at 09:50 am

    I am waiting for a fill of the gap to buy SDS....should take it down to the 93 area...it may not happen tho. But I am waiting for a pullback. Good luck

    Doc

    reason for selloff

    Posted by glennsexton on 22nd of Oct 2008 at 09:16 am

    it may just be that the indexes tried 3 times to get past resistance and failed.

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