It sure looked like we were done for in today's market. Everything was lining up; GM was down to $1.60 (slipping below $1-billion market cap), GE on it's way to sub-$9, XLF breached $7, BAC below $3, and then BAM!! PPT to the rescue! PPT, short squeeze, bear trap, whatever you want to call it, a sweeping rally closed the gap in SPY within 30-minutes.
The SPY (5-min chart) presented a short opportunity once it breached it's "M" (double-top) pattern;while at the same time FAZ presented a similar long opportunity once breaching it's "W" (double bottom) pattern;The Q's was very stubborn this morning and the first to fill it's open gap within the first hour of trade;Here's a 15-min chart on the SPY; nice how the first big "PPT candle" ding's the 50-EMA twice! before retracing;The U.S.Dollar index is approaching a critical mass come next week; pop or flop??
SPY, lowest close (on a weekly basis) since week of April 25, 1997
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
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