The markets put in another squeeze today, it's the same rinse and repeat cycle; figure out where the majority of stops are set, gap the market into that level, hit the stops and scare the bears into covering their shorts yet again.
At any rate, there were a lot of decent break-out (short-squeeze) moves today, but the barometer of this market (GS) saw consistent selling. This bellewether of ours ended the day printing a dark-cloud cover candle pattern on a momentum sell divergence.
The SPY gaped up this morning and bounced off of my resistance pivot (coinciding with the morning's Open) all day long.Check out the TICK divergences intra-day. I'm now using Richard Todd's "TICK Molestor," check it out here.
Today on the SPY showed a momentum sell divergence that ended up rolling overWhile the Daily is also showing waning momentum while price pushes up on vapors.
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.