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.

Thursday, July 23, 2009

rally day

An awesome dollar-crumbling-induced rally today means too many setups to include in today's blog post. The SPY was right out of the gate. In case you needed more clues beyond the strong bar with volume above the Previous Day's High, the markets set up all morning with these Resistance becomes Support (RbS) levels.Amazing how far we've come without any significant profit-taking. Today's high was on lower momentum, but one lower momentum reading does not a top make.Next resistance level looks like it could be the psychological 1000 mark for the S&P, which is also right near a 38.2% Fib level.Two matters which could produce a retracement in the near future are the Dollar and Treasurys approaching significant levels of support. Yields were up pretty big today as the Treasury attempts to entice buyers to support our ginormous debt.If the Dollar index breaks down from here we may be on the road to a triple top in the S&P ;)
Just wanted to include this comparison of the S&P and the U.S.Dollar Index on a monthly basis. Keeping in mind the '03 - '07 rally was in large part correlated with the breakdown of our dollar.

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