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, February 24, 2014

Weak Breakout

Can possibly consider today a failed breakout since we closed under the breakout level.
A couple of losses on the higher time frame setups.
SPY - Rather than wait for the fast and slow lines to cross on the hourly 3/10macd it might have been prudent to just scratch the long entry trade today, particularly since other indexes triggered a close for a loss.

IWM - closed right around the initial entry for this trigger long.  Similar situation as SPY (either close as a scratch or wait for the fast line/slow line to cross.
 DIA - continues to show relative weakness.  An entry today at the given trigger bar would have been closed for a loss.
 QQQ - would have also been closed for a loss.
 XLF - hit the primary long entry target.
 IYT - not sure what to think about this index.  The long entry would have been closed for a loss given the fast line/slow line crossover.  Though the daily still shows a 3d criteria set up it can still roll over (which would probably be a strong bearish move).  Or, it could just pull in to the $130s again and regroup before heading higher.

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