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.

Monday, April 20, 2009

rally relief

As most were expecting today, we worked off some of the Overbought conditions given to us from this month-long rally. You can't really say the bears are back in control yet at this point, as this could still be perceived as merely a pullback. Also of note is that price hasn't yet given up that gap fill left from April 08-09.
These trend days are important to try and identify as soon as possible. With that in mind, I refer to Dr. Brett and his input on the matter. Let's itemize:
1). Price gapped down to S2 on a weak TICK and started dropping lower after 15-minutes.
2). Advance/Decline issues are skewed negatively from the get-go (7:1).
3). The leading weak sectors
going into the day continue their weakness and lead the market downward.
4). Significant buying (NYSE TICK, advance-decline improvement) does not enter the market after taking out S2 and S3.
Here's a look at the 5-min SPY with NYSE TICK in subgraph (the two green horizontal lines being S2 & S3):Some perspective on the Daily shows relief, but nothing more than that at this point.

No comments: