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.

Saturday, December 15, 2012

week ending 12_14

QQQ weekly look
The weekly QQQ 3/10macd is showing the potential for a 4c-4d criteria setup (essentially a bear flag).  Worth noting that the slow line is now negative (which often precedes a 20- & 50-MA crossover) and price is now under the 50-period moving average (which makes a stronger case for the 20- & 50-MA crossing).  This year we've seen two very symmetrical cycles of around 24-weeks, and as it stands we're in week 12 (mid-way) of what could be a symmetrical corrective wave.

We can compare the above 3/10 macd criteria to that of July where we saw the slow line go negative.  The glaring differences being the following;
 - Though price was working within the 20- & 50-MA window we saw green candles and price closing near the upper range of that 20/50-MA window.
 - When looking at the potential 4c-4d continuation criteria we're looking for a bear flag pattern, that's not what we saw in July.
 - The Daily chart showed a channel (symmetrical cycles), compared to the current daily chart where we see a prior double top and price at the bottom of it's "M"-pattern.

XLF has shown "strength", but the weekly momentum hasn't really reflected it, instead showing the 2b criteria which often highlights a 3-pushes to a high pattern

I would post more charts, but they're really showing about the same thing as the two above.  Sector-ETF's, index ETF's all showing weekly weakness.

1 comment:

Anonymous said...

Hi Todd

Thanks for the weekly update charts.

Had an ok XLE short Thur. in Fri with the gapper. Actually to me it fit in with what i feel i learned from your material.
Yes a little subjective at times and indeed once in a while a bit of luck.
Still i thank you for your materials and helpful e mails.

Heavy Metal NYC