Index chatter...

[cire2222]

[Carl Icahn]

Couldnt have drawn it any better!, great chart Cire.

I expect a pop this week due to optionX the usual shake n bake...dont know when exactly but id suspect mid week..then the darkside shall continue..jmo

[MC]

Originally Posted by MC

ALL the index ETF's are showing similar traits with divergence and volume based support. One set stands out from the others to me though and thats the SPY/ S&P. I think this guy has a chance at leading the way for what's to come in the broad markets.


Here is my view. I remain bullish mid term and think we could get a large rally before the herd expects it.
Shorts will probably SCREAM and cover from this next wave also.

Macd divergence is fairly large and macd histogram divergence is backing us up as well.

Volume, volume, volume. Folks volume like this down low is bullish, that's not retail, that's big bucks moving around and in this case buying in at the lows. Why do I think it's buying...look at the support level and how it's been fought with big $. Go to the intraday charts and look where the volume is focused at...down low. Pros don't buy high and sell low folks.

Yes we have a descending triangle, yes we have both volume by price and the top trendline as resistance. BUT the top trendline is pinching off and building pressure like a spring. This spring is getting tight and that's why I feel whichever direction it breaks will have some great momentum behind it. Based on the above backing reasons I have to carry a bullish bias and fade the herd here mentally.

All that being said, a wise trader may have a bias but rarely trades on it. You should be ready for momentum to either side for the best odds of a winner. If your aggressive you could buy at support down low. The more conservative approach will be to have a buy stop AND sell stop in place just outside the triangle so whichever way it breaks you would capture some of the momentum early and then just trail the stops and manage the trade.

Good trading
MC

Sorry, I was just looking through old posts and...well I was 1 day off from predicting the mid term reversal.

[cire2222]

Originally Posted by cire2222

we are already back in the 1400 area. Close my s&p long here and will be looking for a sell signal to get short

[Carl Icahn]

yup, i was expecting midweek, but its never that easy! Id expect choppy flat tape now and have them pull the rug out from underneath later in the week right before the options expire...the P/C was .63 this morning, but volume so light you cant really rely on the indicator. Have to keep close twitchin eye on it now...i was hoping to unload positions into a baby selloff begn of week, instead ill be doubling down with a 10:2...trying to catch it on turn (thurs) or river (friday)...lolz

[MC]

10-11 this morning YM had profit taking on hidden selling.
The herd gobbled the shares up and drifted action higher on low volume.
Then when they realized there was no volume supporting their longs they ran for the exits stomping on one another to get out.

Volume did come in near the lows at close so I'll be watching the bottom of that channel I drew in there to see if she holds or not.

[cire2222]

Originally Posted by MC

10-11 this morning YM had profit taking on hidden selling.
The herd gobbled the shares up and drifted action higher on low volume.
Then when they realized there was no volume supporting their longs they ran for the exits stomping on one another to get out.

Volume did come in near the lows at close so I'll be watching the bottom of that channel I drew in there to see if she holds or not.

and thats where we (guys in live chat) started selling today, woot

[Carl Icahn]

Originally Posted by Carl Icahn

yup, i was expecting midweek, but its never that easy! Id expect choppy flat tape now and have them pull the rug out from underneath later in the week right before the options expire...the P/C was .63 this morning, but volume so light you cant really rely on the indicator. Have to keep close twitchin eye on it now...i was hoping to unload positions into a baby selloff begn of week, instead ill be doubling down with a 10:2...trying to catch it on turn (thurs) or river (friday)...lolz

Glad a lot of you caught the selling today

:Gap closure IWM 74.33
:Gap breach QQQQ through 49.79 (61.8% fib from high to low dailys)


OptionX still til friday could still bounce around, but the reversal today was not unexpected even though ive been a couple days off......after friday I expect the darkside to really to be tested next week..

[Carl Icahn]

I expectd a bounce but not like this..market is challengen me. Just want options to expire already, hope they pin the tape flat tomm. Good luck to all of you guys im gonna need it!

[cire2222]

Im interested to see how we close out this week , tomorrow could bring choppy swings. I think we may be at a key time in the market. Something is brewing