Thursday, May 20, 2010

The Chart of the Year

Well, kids, that was fun! For many of us who have been placing as much emphasis on time as price, today was a jaw dropper in some ways, and further proof that there is more than one way to skin a cat or trade a chart. We have some of what I think are the finest chartists in the blog-o-sphere here every day, and from day one, DDT has allowed us to keep an open mind and share every possible analysis method available to keep each other in the trade and out of trouble. Thanks for that, DDT. And moreover, thanks to every one of you for your tireless work and energy since we all starting meandering into this little trading cave known as TTW. You are generous with your teaching and time, and a thank you cannot really suffice. There are too many of you at this point to name, unlike those first months back in October, but you know who you are.

As mentioned earlier, please zoom out to longer term charts when you have time and make sure you see the story they tell, as well as your hourlies and dailies of course. Hopefully, we can do a little more trend trading and a lot less chop for awhile, but obviously, that depends on your own risk tolerance and patience. Also keep in mind that institutional buyers do watch the 200 SMA as a bell-weather. We are at 10% down now on this tape.. another 10% and we’re back in an official bear market, and I’m sure TPTB will move heaven and hell to ward that off, so we’ll be as careful on the downside as we have been on the upside. Yes.. we remain paranoid. Be careful on the knife catching too- there were calls for lower lows at 666 that never came to pass, and for all we know we really have seen the top for quite awhile.

With that in mind, I’m just sharing the weekly and monthly chart on IWM tonight, and hopefully DDT will pop in later with his DeMark take on the situation. But.. I’d also like to post up Zig’s version of a T Chart. This was a labor of love for him, and a big pay-off for many of the rest of us, not to mention his smaller time frame Ts. Thanks so much, Zig Zag. I think you have your own cult following now. :-)

Best to you all going into OPEX tomorrow- get some rest if you can – even success can be a stressor, so take good care of your health in the midst of everything else. Oh, and by the way- to you newbies to TTW, we are so glad to have you trading with us and hope you’ll stick around to enjoy what many of us have enjoyed for a long time now.

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