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
I am always open to questions, comments, or suggestions on how to improve this blog.

Tuesday, February 3, 2009

Let's Try This Again?

Looks like price may attempt a go on another bullish run to get away from the 8kDow level? All because of a slight uptick in pending home sales?? meh, who cares why, right? Besides, volume overall was below average today.
Here's how the Q's traded today on the 5-min chart. First off we had a "W"-bottom where a long entry would be a break above the middle apex off the W and an expected target would be solid resistance of $29.60. We got a little Head and Shoulders pattern where a measured move to the downside came shy by about 5 cents. Price was supported this time by our Daily 20-EMA (thick red horizontal line) and a rally was triggered by a solid push (and close) above that $29.60 level. R1 gave us some resistance but later became support at the end of the day.The SPY had similar activity, with some more obvious levels of resistance and support.Looking at the 15-minute chart; higher highs & lows are obvious as well as a bullish orientation for our moving averages. Looking to long pullbacks to the 20-EMA as price may attempt to test $31 again (and a test for support on the Daily 50-EMA).90-minute perspective:
The U.S. Dollar index stands at a pretty critical juncture on the daily chart's perspective. A breach of this channel could encourage a rallyLooking for GLD to retrace back to it's 20- & 50-EMA territory (work off oversold levels), where it could be very meaningful if support is found.

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