Thanks for your perspective, ridgetopab.
Appreciated. Chart is from Chris Kimble who was mentored by John
Templeton and has a thirty year track record. You are right, his
headlines and chart markings can be kind of hokey, but in general,
I find his thoughts useful.
Very nice view and thanks for posting - with the
current backdrop (much uncertainty on election and Covid 19) I've
noticed a withdrawal from many traders reducing overall liquidity.
This can lead to very large swings/swoons.
Lastly, I agree with the premise of that general level being
important for many CTA's
Posted by chartboy on 29th of Oct 2020 at 05:34 pm
MDG...truth be told...3288 is both the Weekly and Monthly
(Demark) Bearish Propulsion Momentum levels. So there is an
enormous battle going on over that level. If we close Friday below
it, fast money needs to be short. Meanwhile, if we appear to be
bouncing away from that level they need to be long the
bounce.
Thanks chartboy - one word of caution on Demark signals -
absolutely horrid this year. Fast money has swung and missed
on many such signals truth be told. Keep and open mind and
adhere your plan/money management that includes an exit strategy
commensurate to your risk tolerance.
Posted by chartboy on 29th of Oct 2020 at 05:59 pm
Technically this would not be a qualified break; however, I have
zero question there is a still a massive amount of money
positioning around that number. So, the fact that it is
acting as a pivot is what is most relevant to me. In effect, it is
functioning very much like an options strike price with a large
amount of open interest the day before expiration. Basically,
creating the same effect as a would a very large high gamma
position.
Add in all the Fib fan, retracement, regression channel line,
etc
that
all co-exist right here, plus a bunch of cycle turn windows due
next week and the chances we stay near 3288 are slim.
Posted by chartboy on 29th of Oct 2020 at 06:15 pm
Thanks Steve.
Here you can see the significance of yesterday’s gap. It
represented a break of the .382 Fib fan line from the March lows.
Subsequently we encountered the .236 retracement to the March lows
and the rising trend line that has been in place since may. The
fact that todays bounce appears to be failing, plus the
deflationary nature of the rotation that is accompanying it,
strongly suggests we are heading for the .50 fan line, which of
course would take us down to wipe out the stops below the Sept low,
which is always the type of location these moves target. Given next
weeks turn window, which coincides with the June high and the
August 22 acceleration to the parabolic top and it means that
keeping an eye on all options (up and down) is more important than
usual.
I don't trade off monthly charts but wise to monitor over time.
QQQ already gave a sell signal on daily and weekly charts a
few weeks back. Trade what's in front of you versus
forecasting. Traders put money to work - forecasters don't.
Devise a PLAN around your style of trading. One thing
to note is the weak response in general to good earnings for
several big tech names recently. Respect the prevailing
trend/your triggers and adjust accordingly.
Anybody? Matt?, Steve? You don’t
Anyone have any thoughts about this post? I guess it ...
Posted by mdgfain on 29th of Oct 2020 at 05:22 pm
Anybody? Matt?, Steve? You don’t have a crystal ball, just an opinion about the chart. Tomorrow is the end of the month. Thanks!
QQQ Click bait chart and
Posted by ridgetopab on 29th of Oct 2020 at 05:44 pm
QQQ Click bait chart and headline so take it with a grain of salt.
25% decline possible but, so is a rally to new highs or sideways consolidation. A lot of support levels to take out along the way.
Steve's advise applies; what is your plan, time frame and money management? 25% down from high and current level shown.
QQQ - Chart Link
Thanks for your perspective, ridgetopab. Appreciated.
Posted by mdgfain on 30th of Oct 2020 at 10:47 am
Thanks for your perspective, ridgetopab. Appreciated. Chart is from Chris Kimble who was mentored by John Templeton and has a thirty year track record. You are right, his headlines and chart markings can be kind of hokey, but in general, I find his thoughts useful.
Very nice view and thanks
Posted by steve on 29th of Oct 2020 at 05:50 pm
Very nice view and thanks for posting - with the current backdrop (much uncertainty on election and Covid 19) I've noticed a withdrawal from many traders reducing overall liquidity. This can lead to very large swings/swoons. Lastly, I agree with the premise of that general level being important for many CTA's
MDG...truth be told...3288 is both
Posted by chartboy on 29th of Oct 2020 at 05:34 pm
MDG...truth be told...3288 is both the Weekly and Monthly (Demark) Bearish Propulsion Momentum levels. So there is an enormous battle going on over that level. If we close Friday below it, fast money needs to be short. Meanwhile, if we appear to be bouncing away from that level they need to be long the bounce.
Thanks chartboy - one word
Posted by steve on 29th of Oct 2020 at 05:39 pm
Thanks chartboy - one word of caution on Demark signals - absolutely horrid this year. Fast money has swung and missed on many such signals truth be told. Keep and open mind and adhere your plan/money management that includes an exit strategy commensurate to your risk tolerance.
Technically this would not be
Posted by chartboy on 29th of Oct 2020 at 05:59 pm
Technically this would not be a qualified break; however, I have zero question there is a still a massive amount of money positioning around that number. So, the fact that it is acting as a pivot is what is most relevant to me. In effect, it is functioning very much like an options strike price with a large amount of open interest the day before expiration. Basically, creating the same effect as a would a very large high gamma position.
Add in all the Fib fan, retracement, regression channel line, etc that all co-exist right here, plus a bunch of cycle turn windows due next week and the chances we stay near 3288 are slim.
Excellent commentary and with the
Posted by steve on 29th of Oct 2020 at 06:02 pm
Excellent commentary and with the lack of liquidity such moves can become exaggerated quickly.
Thanks Steve. Here you can see
Posted by chartboy on 29th of Oct 2020 at 06:15 pm
Thanks Steve.
Here you can see the significance of yesterday’s gap. It represented a break of the .382 Fib fan line from the March lows. Subsequently we encountered the .236 retracement to the March lows and the rising trend line that has been in place since may. The fact that todays bounce appears to be failing, plus the deflationary nature of the rotation that is accompanying it, strongly suggests we are heading for the .50 fan line, which of course would take us down to wipe out the stops below the Sept low, which is always the type of location these moves target. Given next weeks turn window, which coincides with the June high and the August 22 acceleration to the parabolic top and it means that keeping an eye on all options (up and down) is more important than usual.
Chart boy, Thanks so much
Posted by mdgfain on 29th of Oct 2020 at 05:37 pm
Chart boy, Thanks so much for the perspective. Much appreciated.
I don't trade off monthly
Posted by steve on 29th of Oct 2020 at 05:30 pm
I don't trade off monthly charts but wise to monitor over time. QQQ already gave a sell signal on daily and weekly charts a few weeks back. Trade what's in front of you versus forecasting. Traders put money to work - forecasters don't. Devise a PLAN around your style of trading. One thing to note is the weak response in general to good earnings for several big tech names recently. Respect the prevailing trend/your triggers and adjust accordingly.
Thanks, Steve. As always, wise
Posted by mdgfain on 30th of Oct 2020 at 11:02 am
Thanks, Steve. As always, wise advise.