Monday, November 02, 2009

Just Another Manic Monday

This is what's left of my computer after last night, so I don't have a lot to offer just yet, but I'm sure David will provide us with some DeMark charts if the music moves him. I was just thinking about what I should title this comment cleaner, and I realized how often traders say things like, "this is really a critical price level," or "it's make it or break it time.." we are a dramatic group sometimes, aren't we? ;-) I'm just now looking under the hood to see where we are on the various indicators and indices, but the Qs do have my interest, and I know they gave David a pause earlier today as well. So.. with that, a look at my daily QQQQ chart and yet another rock and a hard place it seems to find itself in. Maybe we should call it price purgatory for now until it makes up its mind? I'll be back later on with more charting meltdown with the rest of you. Jay made mention of a rate increase coming tonight from RBA, so that is definitely worth a watch. (Thank you Jay!) And a thank you to all for yet another good day of trading rhythm! ~Keirsten



  David here.

  I’ve been doing some thinking.

We, the small, but coordinated group of traders here, have done pretty good job last few days (to say the least).

We have caught downside move from Oct 21st, we did not get shaken off on retest of high on 10/26 (kudos to those who did not resist that latest contagious disease commonly known as “Mad Russian”), we foresaw that vicious bounce on 10/29 (some made extra coin that day and reshorted into close) – all overall this is probably as clean as it gets.

But now we are craving for more, more…and the truth is – we have very limited immediate downside, we might have some upside, but unless current situation will not play out by itself – no matter how hard we think of it – odds are not in our favor in terms of R/R to push it as hard as some of us want to push it now.







As you see (SPY) and (QQQQ) completed or completing sequence down and either already or about to be in abc magnitude of which is as much a secret for me as for anyone else’s.  (UUP) already completed (and “locked”) entire down sequence with current move up being abc of quite extended proportions.  SO, wherever you look – everywhere there are the signs of “looking for direction” and I don’t want to try to predict what is not yet there.


Below are daily/weekly SPY to refresh some levels




Nov 3rd 5:10AM EST – here is another slight melt down in the making



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