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, December 3, 2012

Mon. 12_3

Outside Reversal day showing failure at the 50-day Moving Average.  This could potentially be the fourth lower high we've seen since September (see Daily chart below).  A failure to close above $140 in the coming 1-2 weeks could be trouble.  But for now a pullback off of the recent short covering rally was to be expected so it's a matter of gauging the aggressiveness of selling.
Today's Trade:

A key for the above chart to define the horizontal lines and dots.  For further explanation, see this link:  

I'm a particularly lousy scalper in the first 30-45 minutes.  Something I really need to work on.
Also, I feel as though I'm wasting my time sitting through corrective moves.  Today being a perfect example; After my initial target was reached (and half the position removed) I sat through about an hour of a corrective move just for price to come back to my first target.  In the process, a squeeze could have occurred, or price could have formed a higher low, never to see my initial target price.  Likewise, price could have fallen sharply and quickly, but more often than not it feels like the time decay I endure could be minimized.
Maybe it's something that I should consider hedging?  Selling puts?  Buying the QQQ or a levered ETF?  Just not sure.
Not taking the 9:30 short was a complete fail on my part.  The pullback after the ISM report selling was a very obvious pattern (3min chart) in my view.  Even before the "trigger" I should have been shorting that :/

Higher time frame:
Looks like 3-pushes to a high pattern on the 65min chart.  Conditioned bulls will be looking for the "lower high" so I'm thinking $139-138 will see some accumulation.

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