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 toddstrade@gmail.com
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Thursday, May 20, 2010

Divergences

A momentum divergence is a momentum divergence, and SO FAR, these issues at least have that going for them.
RIMM; in it's 3rd push down on lighter momentum. It spent most of the day in a very narrow range and sold off later in the day due to the weight of the overall market (margin calls).FCX; has had the feel like people are anxious to jump aboard this one for "the bounce."
POT; though technically not a momentum divergence (yet), it to has had a similar feel like people are waiting to ride this for a bounce. Of interest is the inverted hammer candle today.

2 comments:

Ticker Street said...

Don't jump on them yet. GS has had the same divergence for atleast 15 days now.

Yesterday, I posted the chart.

todd said...

No doubt, I was going to post a GS chart along with AMZN. IMHO GS is a special circumstance as it's trending in a tight channel and momentum indicators often tell deceptive stories in such a situation.
Thanks for the input.

-todd