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, February 28, 2014


Most hit their 3rd targets

 IYT - Stopped out for a loss then re-triggered on today's close, initial target indicated, but could go for a gap fill
 XLF - also triggered a long entry on today's close.  Being that the weekly and daily have a fast line < slow line I would be cautious.
All weekly trends are still very strong.

Fir 02_28

Doing the update higher time frame charts over here.
 IWM- primary target

 DIA - secondary target
QQQ - missed primary target by $0.02
 XLF - secondary target
 IYT -  missed secondary target by $0.06.  Probably a good sector to watch starting next week.

4-hour continuous ES primary target still obtainable 1872, with that end of day move not hitting the stop level.


Primary targets met, making up for some previous choppy losses
Nearing a 4th target telling me I should have re-measured my stop/target objectives

QQQ -  Came within $0.02 of primary target
 DIA - a bit shy of secondary target

ES higher time frame working on a 1872 target

Thursday, February 27, 2014

grinding higher

A couple losses (again) and a few targets hit intraday
XLF - loss taken, long entry initiated

SPY achieved primary target, came close after hours to secondary target.
 QQQ another entry initiated but slightly under water at the close
 IWM long entry initiated
 DIA long entry initiated

IYT long entry triggered as well. Looking a bit like a cup & handle.  Perhaps the Dow and Transports will play catch-up tomorrow?

Wednesday, February 26, 2014


Nothing much has really changed this week.  Price seems to  be digesting through time rather than price.
SPY - blah.  Nothing much happening here.  Had a long trigger this morning, but it couldn't get beyond $185.5
Similar story with $QQQ - when these triggers start registering small,  or even full, losses it tells me a bigger move is on the horizon.

Was looking good for IWM but it failed it's target and closed $0.13 under original entry.

DIA - failed to fully break out of a triangle.  Looks like it can go either way
IYT - since the daily was/is still bullish it was worth trying a long on today's trigger, but once the fast line ticked down it was better to take the small loss and enter the 2b criteria short setup.  I'd be a bit nervous holding this short overnight, but a decent hedge might have been to hold some IWM long while taking this short

XLF - still feels like this can go either way.

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.

Friday, February 21, 2014

update triggers

QQQ achieved a secondary target on the upside and triggered a potential short entry on the close.

IWM achieved its third target and retained relative strength into the close

DIA actually got stopped out of its long position for a loss and triggered a short mid-day.  The relative weakness of this market doesn't seem like an encouraging sign.

SPY - achieved primary target and triggered a short on the close.  I'm not entirely certain of the target for this one.

XLF had a failed breakout from the narrow consolidation (wedge/triangle formation).  Though the daily fast line turned negative the slow line is positive (criteria "1" and a 1c tells us the previous momentum was very strong and dip buyers will likely try to support a pullback).
Also, if the Hourly fast line turns negative it will still likely be FL > SL.  So, you kind of have to play it by ear and see how price responds to the underlying support.

IYT showed strength today and reached it's secondary target.  If the 3d criteria long setup plays out we'll see a breakout but if the daily fast line rolls over we could see a strong downward move.

Thursday, February 20, 2014

Thu 02_20

A couple of potential long entries on the higher time frame, but with fairly small targets
QQQ only had a 15-cent target and the primary objective was achieved.  A realistic short trigger would occur if the hourly fast line rolls over and goes negative at this point (same goes for other three indexes as well).
 IWM -  primary target was above previous highs, price back off 5-cents ahead of those highs.
 SPY - barely went anywhere for the last three hours of the day.  Some back-and-fill between $185 and $181 could set up an inverse H&S going into March.
 DIA - was the one index which lost ground following the long trigger.

IYT - watching for the potential for a 3d criteria long entry set up on the daily.  Today's hourly target fell short of the $130.48 target.  Watching for a pullback in the hourly time frame 3/10macd fast line and a continuation (tick back up in the fast line, which would be a 3d criteria setup on both time frames) for a long entry that would set up the daily 3d criteria follow-through.  Failing $128 would likely invalidate the setup.  May not set up in either (for a long OR a short if it rolls over) until early next week.

XLF - could be telling.  If the Daily fast line goes negative things could get messy.  Anticipating that occurrrence would be the hourly time frame 3/10macd fast line ticking down from here (4c continuation).