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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Saturday, March 31, 2012

week ending 3_30

After not much change across the board between last week and this week, it looks like a lot of things can go either way; the perfect setting for the start to a new quarter.

Gold - not much change from last week.  Overhead trend line (inverse H&S) above, with a higher low (for now below)

Copper - not much changed in Copper.  Still within a channel on the weekly and a narrowing wedge on the daily.

The U.S. Dollar Index -  Still holding that trend line.  Should the Daily achieve its 100% flag projection under 78 that would give us a broken trend line, and a lower low (we already have the lower high).

The EURUSD pair looks to be trying to break out of that overhead trend line

Crude Oil saw some selling this week.  The daily came into that downward sloping lower channel line while the weekly has an upward sloping channel that it still has room to work in.  If the 2c-2d sets up on the weekly (lower momentum/higher price low) then I'd be looking for a 3d-type setup on the daily to anticipate a move higher (3-pushes to a low, inverse H&S or a bear trap of some kind).

The Russell 2000 -  Resistance still resisting

The Nasdaq Composite printed a long legged doji on the weekly (as did XLY).  How many times have we heard "A pullback would be healthy"?

The Dow Jones Industrial Index has an interesting coiling look to it.  If this is a symmetrical triangle our next pullback would be the 'e' point before a breakout higher.

XLE - the energy sector achieved it's 50% projection off of the previous seed wave (flag breakdown).   As the weekly is showing the 2c criteria the potential for the daily to set up a 3d entry this coming week or next is possible.

XLV - the Healthcare sector is approaching all-time highs, worth keeping a watch as the XLP & XLY are still running after seeing all-time highs to start the year.

XHB - watching how the Home-builders respond to the $22.50 mark if tested

KRE - Also curious to watch how the regional banks respond, if tested, to the overhead resistance

XRT - the retail group printed a bearish weekly candle.  Short list candidates?

XME- could break either way from this weekly wedge.  4 weeks of buying tails under $49, should it break that previous swing low it could see stops taken out.

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