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.

Friday, October 30, 2009

pre-Halloween bloodbath

Taking a zoom-in approach to this Friday's SPY auction:
Starting with the 2-min chart with modified NYSE TICK histogram. Selling the Positive TICKS today worked spot on.Keeping it very simple; continued downside was evident after price closed under the 50% retracement (previous day low to high) and later the 50MA. We closed 1% lower than the previous lows.What's ahead? We closed the month with a higher high and, so far, a higher low. To the downside there are conceivably 3 levels of potential support.
After that, there's a lot of empty (untested) space below. A LOT!

No comments: