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.

Monday, December 7, 2009


Price is certainly respecting levels here:
Here are some patterns I see:
Inverted Roof on the DIA (similar on the Q's), a measured move would put price back to the previous swing lows:Previously the Dow Jones Transportation Index (IYT here as a proxy) set up a bullish wolfe wave. However, it now looks to have formed a contrary wave with a potential target to at least $68.IWM has a similar bearish wolfe wave structure at the momentSpeaking of Wolfe Waves, the last hour in the SPY saw a bearish wolfe wave take shape:
Although this bullish scenario is still in play for the SPY:

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