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.

Thursday, July 29, 2010

I'm not buying it, you buy it...

Following POT earnings we saw a price liftoff on strong volume, only to see the move faded once hitting that overhead supply range ($100-$101). Have we noticed a theme yet of beat earnings moves being faded??
At any rate, here's the overhead supply zone as posted last night:Following a failure test of the highs, price formed a seed wave, giving 2 primary targets. I'll post an end of day update on this chartIt's a funny thing to see strong buying (as evidenced by the green volume bars) into a move, but the overhead supply concept will win out every time (initially anyway, this could be a mechanism to flush out "weak" hands and we could base and consolidate between this $97-$100 range for a while longer, it just depends on how much demand there is).
...should have bought it...what a move!

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