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.

Friday, March 21, 2014


Well, I didn't see that coming.
Some stop-outs, some triggers, some targets nearly but not quite achieved.  Brutal.
SPY-  I mentioned yesterday that if price didn't break $188 tomorrow then run for the hills, and that's just what happened.  So, one could have managed losses better than what is put forward here, but if you were to adhere to strict rules based on a lagging indicator than the losses listed are a worst-case scenario.  In any case, the primary target here came within $0.07 today

Dow - triggered a potential short on the close, will be interesting to see what happens on Monday
 QQQ- just fell apart today.  Here is an instance where discretionary trading comes into play.  Do you take a full stop out, which would have been $0.81 or do you move your stop up to a recent pivot?
At any rate, there are a lot of red candles on the daily chart with a number of lower highs.
 IWM - potential trigger on the close
 XLF - came within $0.03 of primary target :(
 IYT- potential short trigger on the close.  Being that the daily 3/10macd has a slow line so far from zero I would be nervous taking this short.

EURUSD didn't reach the primary target, so an exit based on the FL/SL cross seems prudent.

Higher time frame ES with a small loss based on a down-tick of the fast line with consideration to the higher time frame sell divergence (top indicator represents a time frame three-times "slower").

Looking at the weekly SPY doesn't appear all that bearish.  However, the weekly 3/10macd fast line has ticked down while the higher time frame macd has a FL<SL.  Again, not a bearish trigger, but should encourage a short adverse tolerance for long positions.

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