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
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Monday, June 22, 2009

trend down

The markets never had a chance today.
A sizable gap down, nearly to S2 on strongly negative TICK. Declining issues outpacing Advancing by somewhere over 2:1.
Notice how price breaks down from the opening range (white horizontal dots) and pulls back to test that range, giving a good opportunity to go short (given a suspected trend day). A strategy to look at is shorting those "pullbacks" in TICK to above the zero line. It's a similar strategy to waiting for price to retrace to the 20-EMA after falling out of the keltner channel, but in this situation price didn't quite make it that far, so watch the TICK for opportune moments.Price based around S3 for the rest of the afternoon, while getting a final push down, keeping it below the important 900 level. This s3 level coincided with a previous chop zone, as you can see from this 30-min chart highlighted in blue.Looking at the daily chart looks pretty telling. It looks as though we aren't going to get that "Golden Cross" and if $88 doesn't hold things are going to get bloody.
Today's degenerate gambler play for end of day was TZA. I look to TZA/TNA in the last 30-min just in case we get a surge going into the close. Such was the case after breaking through previous resistance.

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