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.
Tuesday, April 28, 2009
What a crappy day. Buy the open, sell the close. A lot of false signals, but the big moves paid off. The mid-day consolidation formed a triangle that broke out to the upside, but didn't find much buying behind it. We ended up closing (SPY) right around the lows of the previous day (for that matter, Friday's low as well; around $85.75). The only thing of interest I have for today is the chart of the SPY daily, and what looks like could be a Diamond Top. I'm also taking note that the ADX is at the lowest reading since September '08. I refer to a previous post regarding these dried-up volatility troughs. The Nasdaq, an index that has shown relative weakness in this counter-trend, is looking like a rising wedge: