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.
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Thanks chartboy - one word
Anyone have any thoughts about this post? I guess it ...
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.