Wednesday, April 22, 2009

BINGO!! Topping Action Update











It Almost faked us out several times but honored the stops and tides shifted in our favor right before the close. We need to see follow thru tomorrow and/or friday so we can lock in those weekly charts with a RED candle and start this much needed correction. If we close on a nice juicy red candle on the weekly charts then i think 7000-7500 on the DOW is very achievable.

7 comments:

scott_chegg said...

I'm seeing a lot of divergence on those charts, as the price has moved higher the RSI and MACD is moving lower

Anonymous said...

Certainly, it seems more clear now with the sharp decline of the last 30 minutes just after testing the lower line of the rinsing wedge.

If the pattern plays out, today we would have seen 2 of A of perhaps a Mayor B underway.

Now we need to see downside aceleration. That's 3 wave. It should be really nasty, like a 300 points drop on Dow at least quiclky.

Stewie said...

scott: yes, all that negative divergences will either work itself into a breakdown or a sideways consolidation. i am hoping for a breakdown.

Stewie said...

anon: i am not much of E.W.er but i sure hope you are right. would be nice to see the bears reclaim some territory.

todd said...

I have to say, that what I give you the most credit for Stewie, is staying flexible in your outlook. Just letting the tape tell you what it's doing and trade off of that. kudos mate.

-todd

Stewie said...

hi todd. i gave up my ego a long time ago. In trading, there's only one right side that matters, it's the market's side. If you try to force your ego on the market then you are playing a dangerous game which you will likely not win. Expect anything and be ready to react without any bias. Tomorrow, these patterns could totally change and you need to quickly readjust the game plan if that happens.

later bro.

Cliffynator said...

I've found that many traders won't chart the leveraged ETFs (like FAZ, SSO) for pretty much the same reasons we don't want to hold them for too long. I chart XLF when I want to trade FAZ.

Then again, since FAZ is an enhanced version of the underlying, maybe a turnaround in the banks would show up faster on a FAZ chart.

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