Chart 2
04/01/09 - Bulls took hold of the market today in front of the M2M decision tomorrow, uptick rule, this that and the other. The Challenger Report show the jobs market is in the tank. I was surprised to see such a strong rally following this report. I noticed three things reviewing today's closing charts.
1. Our move down from the the 666 low stopped between two fib levels...never making it to the .38 level. You would expect this at least from such a strong move off the bottom.
2. We filled the gap today, or came within a fraction of doing so on the SPX
3. Today we completed an A-B-C pattern where A=C
So where am I going with this. I believe we at the least get a move back down to the 770 level before resuming any uptrend
There is no doubt tomorrow will be very volatile
04-02-09 - Not always are we on the right side of the trade. (AZO) saved my ass today (see below) as it took a deep dive. I used my profits from AZO to shore up my losses in SPY. I as some were looking for a "sell the news" scenario but it just didn't happen. After spending several hours reviewing the charts I see that we are no higher or lower than we were one week ago. We have a nice gap left from today's move that would make my trade whole should we fill it Friday / Monday. The market has totally ignored two horrible employment reports this week and we have one more tomorrow. I am currently long FAZ and short SPY so any dip in the market tomorrow will produce good gains as I added to my position today. I saw on the news tonight the market is set to post its best gain since 1930 something. The fundamentals in our economy still suck and I don't think you will find to many people out there that will disagree with the fact that we will test our recent lows. The trading environment today though is day by day so that is as far as I am going to try and trade the market. We continue to see gap after gap up and down...trapping buyers and sellers alike...mostly sellers. Chart 2 speaks volumes and if you have tried to fight it ...well you know. Until the trend is broken...remember this "the trend is your friend".
Hi Harmon,
ReplyDeleteThis is zigzag..I can't seem to find your email on your blog?
excellent point, im seeing a turn time in the ballpark of 9:45 - 10am, I think there is a good chance we see the HOD during this time frame.
ReplyDelete830 = 1.618 x A, so is the ABC part of a larger B?
ReplyDeleteif so will C = A or 1.618 xA
if equals A then C at 775
if 1.618 A then C at 741
if we bust through the highs..something else is going on..