Symmetry is a beautiful thing.
The month end battle was fought late in the day to a split decision.
With GDP news already baked into the cake, the premarket double top high was never touched again during normal market hours, and remains there as a target for the longs.
The bulls would have preferred the 1275+ closing, and the [...]
Archive for July, 2008
The Mechanics of Symmetry
Posted in The System, tagged mc escher, month end trading, news trading, symmetry, terrible ted on July 31, 2008 | Leave a Comment »
It’s showtime !
Posted in Psychology, tagged beetlejuice, end of month, kings and queens, one way up day, retracement, window dressing on July 29, 2008 | Leave a Comment »
Punch drunk and reeling, the bulls got up off the canvas and delivered an uppercut of their own today.
The approximate 1290 to 1230 range had a pullback today to the middle area (1260 +/- for any math challeged traders).
As Betelgeuse would say:”It’s showtime!”
One of the most important pieces of the puzzle is never addressed much in the [...]
There will be Blood
Posted in The System, tagged antonio margarito, breakdown, continuation pattern, head and shoulders, megaphone, stikky charts, stop losses, trend trade on July 29, 2008 | Leave a Comment »
in the streets…
AJ Monte has put the importance of stop losses into this great article.
Take a look at today’s chart and imagine the pain being experienced by the longs who added to losing positions the past few days in an attempt to “average in”.
Remember Nucleus Accumbens?
The longs got hammered today after a weak attempt to convince the shorts [...]
Fry day
Posted in The System, tagged box system, nicholas darvas, range trading on July 26, 2008 | Leave a Comment »
Yesterday’s trend down action left the longs underwater and the shorts out of breath.
The boys left town early today and lathered up under the hot summer sun while the market was put on simmer. It was low volume behavior for the end of the week as both sides agreed to a temporary truce.
Why take five days to do what you [...]
Where did I come from?
Posted in The System, tagged head and shoulders pattern, indicators, moc, trend day on July 24, 2008 | 1 Comment »
This age old question, and it’s obvious counterpart “where am I going?”, are some of life’s mysteries.
To the astute trader, however, the rear view mirror gives us clues as to where we are going.
Previous support, when broken becomes resistance. Previous resistance, when broken, becomes support.
This tends to work in all time frames, and the market has a [...]
Dont squeeze the charmin traders
Posted in The System, tagged emotional trading, squeeze, stop losses, sway on July 23, 2008 | Leave a Comment »
Squeezes are a fact of life.
The only question is, will you fight them or join the winning team?
How do we know when high is “too high” or low is “too low”?
Whatever our pet indicators are saying, we need to protect ourselves from ourselves.
This theme is repeated often here because it is the all-important rule that [...]
Ride the Wave of Life
Posted in Psychology, tagged austin passamonte, gap play, late day breakout, slim jim on July 23, 2008 | Leave a Comment »
Riding the wave of trading is easy once you learn how.
Riding the wave of Life is a lot harder for most of us.
Austin Passamonte has written a great article that I would like to share with you. It puts trading, or any other business for that matter, in perspective.
The 43 bar slim jim caged the shorts and [...]
Trade Logic
Posted in Resources, tagged infinity brokers, market dynamics, tom williams, trade logic, vsa on July 22, 2008 | Leave a Comment »
I was at an interesting seminar today. Tom Williams gave a fascinating demonstration of his VSA methodology, sandwiched around the vendor sponsoring the event.
I happen to believe the methodology he discovered is sound, and is a valuable resource to aid us in our understanding of the markets. Their interpretation of the charts gave added credibility to some of my signals, and [...]
Scalper Heaven
Posted in Resources, tagged naturus, range trading, scalping on July 20, 2008 | Leave a Comment »
The early morning Citi news gave the market thrust at 6:30 am, and that was it for today’s excitement. It was range trading the rest of the day as the boys left early for the shores on a gorgeous summer day.
The market threatened to break out several times but lacked the volume to muster an [...]
