Got a little selling today, still nothing decisive. On the 60-min chart below we see momentum continue to work lower. The ellipse on the 3/10 oscillator highlights whether we'll see the fast line correct off of the slow line in the coming future, or perhaps we'll get a fresh momentum push higher from here.
The SPY gaped down into my support pivot this morning and eventually filled the down-gap forming a bear flag. The three red arrows represent good shorting opportunities. The first two worked well, while the third didn't follow-through. Notice how the momentum oscillator was bearish (negative slope) for the first two arrows/pullbacks, but for the third one the 3/10 was leaning bullish and "recovering" the slow line, a subtly worth paying attention to.
RIMM traded beautifully today and perfectly highlights the concept of consolidation preceding expansion. If you can draw a horizontal line that touches most of the price action you can easily see that you're in a consolidating range. The longer the time spent in consolidation, the better is the likely expansion out of that range.
My blog upkeep may get a little sloppy for the next few weeks as I get closer to moving. So a combination of packing and socializing may occupy more of my time for now. You can always keep up with me on twitter though :)
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.