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.

Monday, June 11, 2012

resistance resists

Price made a go of it, gaping above resistance but was aggressively faded.  With the SPY (below) there still remains the opportunity of putting in a higher low with some likely support around $130 initially.

And, for all intents and purposes, putting in a higher low is much more constructive in terms of price discovery.  The Moving Averages say bearish, so rips are getting faded until the tide changes.  Speaking of which, here's a look at the SPY with just the 20- & 50-day Moving Averages (the "tide").  While bulls can consider a lower high from here on out to be constructive, the bears can consider higher price discovery to be desirable.  If price moves higher, say to the 50-day MA, that would give the Moving Averages a chance to form a similar wave pattern as the ones highlighted below.  Either way it will take some time, maybe things will be clearer by month end.

The U.S.Dollar index had a strong day, still waiting on a follow-through day though

Treasuries a similar story as the dollar above

While Crude Oil remains to be getting crushed (here represented by USO).  Approaching lows not seen since last October (of which, last October they weren't seen since '09).  At least with these pesky speculators getting crushed (even though there are two sides to every trade) gas prices will be plummeting any day now, right? hmmm
This USO has to be due for a dead-cat bounce soon I would think, no?

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