Posted by sschwahlen on 6th of May 2008 at 10:25 am
Hi Matt,
I am wondering if and when you will recommend substantial shorts
on the S&P. Haven't we gotten (almost) to the setup that
you talked about for several weeks now? Or am I missing
something important here?
sschwahle- technically we are still trending higher, however over the
next week or so I think the market could put in a top, we'll see.
My 50% Fib# was hit for the S&P 500, however there is still a
chance that it could work up to the 61.8% Fib.
The 60 min charts are in bear
rising wedge patterns, you could enter a short if those are broken
to the downside (so far they have not broken to the downside). Or
you could wait for the daily index charts to break an uptrend line
and also wait for the slow stochastics period of 60 to cross below
80% for a confirmation. If you want you can short on a bounce with
an objective stop. Coming into today the market was oversold in the
short term. I like to short preferably when the 60 min stochastics
is overbought
However, if you are a a long term
swing trader, then you can just play the daily chart, suppport is
the uptrend line, also an uptrend line on the RSI, also Stochastics
is still above 80%
Shorting S&P500
Posted by sschwahlen on 6th of May 2008 at 10:25 am
Hi Matt,
I am wondering if and when you will recommend substantial shorts on the S&P. Haven't we gotten (almost) to the setup that you talked about for several weeks now? Or am I missing something important here?
sschwahle - technically we are still
Posted by matt on 6th of May 2008 at 10:51 am
sschwahle - technically we are still trending higher, however over the next week or so I think the market could put in a top, we'll see. My 50% Fib# was hit for the S&P 500, however there is still a chance that it could work up to the 61.8% Fib.
The 60 min charts are in bear rising wedge patterns, you could enter a short if those are broken to the downside (so far they have not broken to the downside). Or you could wait for the daily index charts to break an uptrend line and also wait for the slow stochastics period of 60 to cross below 80% for a confirmation. If you want you can short on a bounce with an objective stop. Coming into today the market was oversold in the short term. I like to short preferably when the 60 min stochastics is overbought
However, if you are a a long term swing trader, then you can just play the daily chart, suppport is the uptrend line, also an uptrend line on the RSI, also Stochastics is still above 80%
Here's a daily chart of the S&P 500 with comments