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
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Friday, December 17, 2010

Weekly Bars

Interesting close to the week.  Only two weeks left in the year, think they can hold it up for that long or are we due for a correction?  Things certainly look to be getting heavy on the upside.

All weekly charts are showing bearish candle patterns.

The SPY showing a key reversal bar (though it is lacking in range); Higher Open, higher high, closing down and below the previous candle's close:

DIA - printed a shooting star

QQQQ - Hanging man with a high 33-cents shy of the '07 highs

SMH - hanging man type candle with a lower low, lower high, higher open with a lower close than the previous close.  The real body actually engulfs the previous candle's real body:

IYT - Transports putting in a key reversal bar, with a real body which engulfs that of the previous bar:

Meanwhile, the VIX tested a low not seen since April '10.  A good time to fade the move into support?

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