i like to think not but some would disagree.
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i like to think not but some would disagree.
the little inverted triangles are the trades , so started early july mainly , then early august for main positions.
the last down triangle was a shorter term trade that stopped me out for about + 30 yesterday which i didint include.
i would be carefull now entrep as this is the end game for the first leg of the bear!
Thanks, yup I am only going short term and keep tight stops. I too see this bottoming soon and am just trying to take advantage ;)
Not looking good for the bulls - tried to go higher this morning but failed. Volume was very weak. Added to my short at EOD.
Man there will be/are some bargains out there though!
The wise words from Dumbass.... be careful as this is the end game for the first leg of the bear.
DOW rose 322 (+2.97%) to 11177
The first leg and "recovery" is the denial stage....This volatile more up than down "recovery" (sucker rally) lasted 4 months back in the last Bear market Cycle stage 1 (denial stage) (end Jan 2008 to May 2008)..."bargain" hunters put counteracting upward pressure back on the index....until the next bad news hits.
The DOW rose on bad news. Apparently this is good now though because it will force QE3... what a joke. Volume was weak again too. That said I covered 1/3.
Charlie Aitkens newsletter today shows 3 charts of Bank Of America ( Holds 25% of all U.S bank deposits;too big too fail,yeahh right) Meryl Lynch and Goldman sachs all falling away badly. combined with death spirals on many European banks we are on "the cusp of another round of bank counterparty risk". Take profits on any lifts methinks.
overnight action seems to confirm a bottom is in on the sp 500.
i would now trade from the long side with extreme caution as the primary trend is still down.
uptrends in a bear market can be sharp and powerfull , i will look at potential targets for this up wave.
for the more technically minded punters some charts confirming eacy other.
firstly the bottoming pattern looks like a cup and handle bottom set up on a truncated fifth wave compromising of and ending diagonal pattern. which basically means the true price bottom was the third wave down and the fifith wave did not set the price low as there was no bear momentum left to set a new low.
http://i183.photobucket.com/albums/x...ey9999/cup.jpg
next looking for 5 waves up and 3 wave correction to confirm uptrend
http://i183.photobucket.com/albums/x...9/elliot-1.jpg
and finally a text book bullish pattern called a gartley
http://i183.photobucket.com/albums/x...99/gartley.jpg
not exactly textbook ;+) B point was at 50% not 61.8
as per my post #804 , there is a support zone around 1110-1160 and so congestion may occur here. and on the shorter time frame we've now found support at 1150 itself.
I drew this before last nights trading.
Attachment 3565