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Edwardsville, IL 62025
$SPX - Chart Link - here's a chart I
haven't posted in a while, but it is a good educational thing and
something I've discussed many times.
The chart is a daily SPX that focuses on the 60 Stochastic when
it is embedded above 80% and has been for at least a week or two,
that is a trending momentum condition.
When the market pulled back strongly this week, the 60
Stochastic was still way over 80%, and yet a huge number of people
get very bearish. The fact that the the 60 Stochastic
remained well over 80% was a positive sign for the market, and you
can buy when those fast oscillators indicators I show get
overbought with a stop say predicated on the 60 Stochastic going
back below 80% or use an ATR Trailing stop like we use on the BPT
In the short term we got a nice bounce today, now we'll see if
we still form a lower high or chop around a bit and if the 60 Stoch
remains above 80%.
$SPX - Chart Link - pinching on the ribbon
pretty good now
I exited part of the systems trade because the gain was
strong. Thank you!
covered my call at SPX 3119
one other comment, a buddy of mine who has developed some
interesting sentiment indicators, his stuff has been showing all
through the fall that traders keep getting way too bearish on any
little pullback in the market. Basically you get even 1 day
pullback and everyone is super bearish again. Honestly that's not
how tops are formed, you need complacency
basically traders know the market is overbought and keep looking
to catch the top but it doesn't work that way
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