Click chart to enlarge The Dow is just riding up the bottom of the channel today. Despite a triple digit loss earlier, it's an uneventful day as long as it stays within the channel. This channel is so well-defined and has been validated (tested) enough times that there's no doubt a chart like this is up on the computer screens of traders around the world. When the Dow finally does break down from this channel, the initial drop will be very significant. You'll know then that these channels are used by many. We'll post it here when it happens.
7 comments:
Joe, thanks for the kind words from your comment on the last post. Your performance is terrific... keep it up!
We're down 15% or so since June, which is not great, but considering we're primarily buying and holding 2X Long ETF's, we should be down 80%!.
If the uptick rule is reinstated, how will that effect the 1x 2x and 2x ETF shorts?
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Got to hand it to you. I watched the comments back and forth yesterday and noted your resolution to buy FAZ, damn the torpedoes. I just didn't have the same confidence level that you did, so just watched as it went up a juicy 15%. I think your trading skills are beginning to influence a number of people reading this blog.
Snot
Those charts, and your attached commentary are probably the single biggest help in understanding the market, as well as individual stocks, etc. I always look forward with anticipation to your next one. Thankyou. I've only made three trades thus far this year, and am basically even. That's why your last four charts of are particular interest. I've all my powder sitting nice and dry, waiting for the next big movement. Keep 'em coming.
The channel just has been broken. But this is not as important as a horizontal support. You know that from the Weinstein book. :)
Look at the chart of XLF I posted today at lunch, in the "Intraday Dow" thread. And note where XLF topped, and where it bottomed. lol nearly those exact numbers are right there in the little boxes. Sometimes I feel like I'm creating my own reality...
Very nice chart Snot, somehow I didn't notice that particular uptrend. Thanks, for your excellent work!
Is this down action MMs trying to negate as many options as possible after a bear market rally, thus, will we head back up next week? Or are we headed down to retest the lows?
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