Posted by dodgerdog on 23rd of Mar 2009 at 07:20 pm
Bruce that was the case as of the middle of last week when we
paused and pulled back from strong resistance on the initial
attempt to get through the 805 level. We did get a two day pullback
and we remain overbought but I also stated last night that a break
of the SPX downtrend line could begin a rally attempt and once we
took out resistance (took 3 attempts) the market was likely to move
to the next resistance levels. Taking some profits on a move from
below 666-700 area up to strong resistance (SPX 805) is prudent but
if you're a long term swing trader with large risk tolerances then
give it a wider stop. For example, if you're comfortable with the
SPX pulling back nearly 40 points (which it did late last week)
then that's fine. But you have to have a stop in place in
accordance with your risk tolerance and trading objectives in case
it keeps going down. For swing traders, we are not looking to
chase this market up but rather buy on deeper pullbacks.
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Bruce that was the case
SPX 5 min chart.png Maybe? that's a 5 min chart so ...
Posted by dodgerdog on 23rd of Mar 2009 at 07:20 pm
Bruce that was the case as of the middle of last week when we paused and pulled back from strong resistance on the initial attempt to get through the 805 level. We did get a two day pullback and we remain overbought but I also stated last night that a break of the SPX downtrend line could begin a rally attempt and once we took out resistance (took 3 attempts) the market was likely to move to the next resistance levels. Taking some profits on a move from below 666-700 area up to strong resistance (SPX 805) is prudent but if you're a long term swing trader with large risk tolerances then give it a wider stop. For example, if you're comfortable with the SPX pulling back nearly 40 points (which it did late last week) then that's fine. But you have to have a stop in place in accordance with your risk tolerance and trading objectives in case it keeps going down. For swing traders, we are not looking to chase this market up but rather buy on deeper pullbacks.