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.

Wednesday, May 27, 2009

elephant in the room

It's the 200 period Moving Average, and it's looming over every index. It has to be tested (yeah, yeah, there are no "have-to's" but just go with it) and if it holds shouldn't that open a floodgate of investors/traders with all sorts of time frames? An orderly break of the 200-MA, combined with a re-test holding as support, should bring out swing traders, hedge funds, buy-and-hold investors (whether they're looking to double up or not be left behind), not to mention cheerleaders on the boob-tube. Which should in turn give this bull run another strong push up. We should be on guard, however, for any sort of shooting star/climax move.
The laggard DJIA
S&P500Nasdaq Composite leading the wayRussell2000For the sake of inclusion, the DJ TransportsAnd the DJ Utilities

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