Here's the 5 min SPX again, with the look of the MACD, I would
not be surprised to see another move up to take out the highs to
form a divergent high. The 1010 area in red appears to be a
good resistance area
made another move up like I thought. Whenever you see the
MACD like that, generally you get another move up, basically it
recyles back to zero and moves up again. That kind of action
in the MACD means that price was a 4th wave consolidation and will
make a 5th wave move up, which is what is happening. Anyway
just pointing it out for educational purposes
Posted by pinkcactus7 on 12th of Aug 2009 at 01:56 pm
Matt,
Please explain "Whenever you see the MACD like that,
generally you get another move up, basically it recyles back to
zero and moves up again." See the MACD like what? Is it
when the 2 ema's touch with a positive slope.
Steve and I have discussed that before, but basically when you
have a 4th wave consolidation, the MACD tends to look like
that. Remember 5th waves always have negative divergence.
Posted by sptrader on 12th of Aug 2009 at 01:36 pm
Hi Matt,
would you consider the upcoming 5th wave move up an objective
area to short? Does this new high create negative divergence, along
with hitting the 1010 resistance, so a short there may be a good
idea?
Or would you recommend to wait until the market reacts to the
Fed's comments this afternoon?
well you could short there with a tight stop, maybe just above
that gap near the 1010.5 area. But of course the Fed comments
could cause some volatility. However they are obviously not
going to change interest rates, so it's more what they say today
than what they do.
Posted by dallassteve on 12th of Aug 2009 at 01:43 pm
I am interested in opinions, too. I went ahead and bought
some shares of SDS when it fell this morning. It still
has support of its broken trend line. If I was more
confident, I would buy more shares.
Posted by rgoodwin on 12th of Aug 2009 at 01:03 pm
Okay, call me stupid - where's the chart? I click on the SPX 5
Min "Title" but nothing happens except to open the post in a clean
window....what am I missing here?
Posted by rgoodwin on 12th of Aug 2009 at 01:19 pm
Well Maybe I'll sign off and back on because there is NO picture
of anything related to that post on my screen. The computer
gremlins must have invaded....
SPX 5 min
Posted by matt on 12th of Aug 2009 at 12:59 pm
Here's the 5 min SPX again, with the look of the MACD, I would not be surprised to see another move up to take out the highs to form a divergent high. The 1010 area in red appears to be a good resistance area
made another move up like
Posted by matt on 12th of Aug 2009 at 01:23 pm
made another move up like I thought. Whenever you see the MACD like that, generally you get another move up, basically it recyles back to zero and moves up again. That kind of action in the MACD means that price was a 4th wave consolidation and will make a 5th wave move up, which is what is happening. Anyway just pointing it out for educational purposes
Matt, Please explain "Whenever you see the
Posted by pinkcactus7 on 12th of Aug 2009 at 01:56 pm
Matt,
Please explain "Whenever you see the MACD like that, generally you get another move up, basically it recyles back to zero and moves up again." See the MACD like what? Is it when the 2 ema's touch with a positive slope.
I appreciate this great educational info.
Thanks
Steve and I have discussed
Posted by matt on 12th of Aug 2009 at 02:00 pm
Steve and I have discussed that before, but basically when you have a 4th wave consolidation, the MACD tends to look like that. Remember 5th waves always have negative divergence.
objective shorting area?
Posted by sptrader on 12th of Aug 2009 at 01:36 pm
Hi Matt,
would you consider the upcoming 5th wave move up an objective area to short? Does this new high create negative divergence, along with hitting the 1010 resistance, so a short there may be a good idea?
Or would you recommend to wait until the market reacts to the Fed's comments this afternoon?
thanks
well you could short there
Posted by matt on 12th of Aug 2009 at 01:44 pm
well you could short there with a tight stop, maybe just above that gap near the 1010.5 area. But of course the Fed comments could cause some volatility. However they are obviously not going to change interest rates, so it's more what they say today than what they do.
objective short
Posted by dallassteve on 12th of Aug 2009 at 01:43 pm
I am interested in opinions, too. I went ahead and bought some shares of SDS when it fell this morning. It still has support of its broken trend line. If I was more confident, I would buy more shares.
Okay - Now the image shows up. All better. Computer Gremlins cannot beat me!
Posted by rgoodwin on 12th of Aug 2009 at 01:23 pm
SPX 5 Min
Posted by rgoodwin on 12th of Aug 2009 at 01:03 pm
Okay, call me stupid - where's the chart? I click on the SPX 5 Min "Title" but nothing happens except to open the post in a clean window....what am I missing here?
I clicked on the chart.
Posted by RM686 on 12th of Aug 2009 at 01:10 pm
I clicked on the chart. It worked
Where's the link for the
Posted by rgoodwin on 12th of Aug 2009 at 01:11 pm
Where's the link for the chart?
Click on the thumbnail
Posted by trip on 12th of Aug 2009 at 01:16 pm
There is no link. There is a small picture of the chart. Click on that.
Well Maybe I'll sign off
Posted by rgoodwin on 12th of Aug 2009 at 01:19 pm
Well Maybe I'll sign off and back on because there is NO picture of anything related to that post on my screen. The computer gremlins must have invaded....
spx 5 min
Posted by RM686 on 12th of Aug 2009 at 04:00 pm
I got stopped out of SDS so I am confused about what your saying. So the market made another move up> so now what ?
In choppy markets you have
Posted by cspirit on 12th of Aug 2009 at 04:04 pm
In choppy markets you have to trade smaller share size and use wider stops. I have my SDS stop at $42 ...