The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.
Thursday, February 19, 2009
It's a very delicate situation as we creep down to multi-year lows. We see, and should expect, short-covering rally's right around key support (new lows, previous day's low, pivot points, etc.), with continued selling at key resistance. The Dow is just points away from the lows made in November, while the other indexes seem to be taking a wait and see posture regarding whether they will accelerate to the downside.SPY orientation is bearish; price closed on the lows, with realistic support being back down to November's low of the $75 range.Today's gap up was met with selling consolidation on vwap over the course of the first 45-minutes, afterwards it was all down with opportunities to short returns to vwap.Here's a 10-point range bar ($0.10) of the SPY with the yellow dots indicating volume breakouts.and a 20-point range