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, December 13, 2012

Thu 12_13

A good example today of being cautious (or at least patient) in buying divergences.  The SPY 15-min 3/10 macd divergence was present from early in the afternoon, but didn't trigger any "buying" until 30-minutes prior to the close.
To briefly explain the above chart:  The first down arrow (with an "X" above it) on the 5-minute chart to the left was the entry I should have taken (but did not) in anticipation of the higher time frame 4c criteria (bear flag).

Two looks at the higher time frame:
Here the Daily/65-min to show the fresh momentum low on that 65-min time frame

While the Daily/130-m pair looking like a bounce could be in order due to the reverse divergence.  Perhaps a throwback to that channel drawn on the 65m above ($143.50?)

As for the rest;
XLF - strong downside momentum but holding previous lows.  It's not dead yet, need to gauge the impending bounce

DIA - looking like it's just pulling into trend support

IWM - nothing spectacular, just filled a gap (again, reverse divergence)

QQQ- just still within a range.  Double-top is evident so weakness $64.75-$65 is on the radar

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