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.

Tuesday, May 4, 2010


The SPY and QQQQ both bounced on their 50-day Moving Averages.
It will be interesting to see where buyers step in from here. The Q's got help from the 50-day, but there's also a previous resistance level (Resistance becomes Support) going back to '08.The SPY got support from it's 50-day, but there's also a previous congestion zone that supported price. The next level down is around $115, which would still put price at a "healthy correction" level.
The Dow seems to be creating these 200-point congestion zones. In the grand scale of things, we could get a correction back to the 200-MA on all indexes and still put in a higher low.
Meanwhile, the Dollar has some overhead resistance approaching in the form of a Fibonacci Extension confluence, as well as a previous support level (not shown).Here's a look at the SPY vs. TLT correlation. A test and continuation of their respective trendlines was a telling sign.

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