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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Thursday, January 31, 2013

Thur 1_31

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

Aside from the morning short trade I got chopped up in the afternoon.  The Second short was about a point loss and the 3rd trade (long) was slightly better than b/e (bought 150.10-sold 150.12).   I wanted to try and get short into the close but the 2pm bar was too fast and the "triggers" didn't line up right.  Kept me out of a choppy environment into the month end close.

Higher time frame is looking a bit like a Head & Shoulders.  The slow line being dragged negative and price working inside the 20- & 50-MA "window".   The higher time frame would flip bullish if the 3/10macd fast line turns green (would need momentum over $150.25 coinciding with an overhead trend line break).
Otherwise we can see the 65-min 3/10macd fast line tick back down negative (likely on a $149.50 break).

If there's one thing that doesn't make sense to me, it's the QQQ.  It spent all year/month in a 2.5% range.  If it closes tomorrow around where it is now, the weekly would have a tri-star doji pattern within a Head & Shoulders.  From what I've seen, the QQQ often diverges from the other indexes (particularly the DIA)  before a turn.  Of course, anything over $67.50-$67.75 tomorrow would negate the above thought process.
First of the month on a "big #"  (NFP) should be a decent range day I would suppose.

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